The telecom operator, Bharti Airtel on Monday (September 30) through an exchange filing announced that the prepayment of Rs 8,465 crore to the Department of Telecom (DoT).
In the regulatory filing, the company said, " Bharti Airtel (“Airtel”), one of India’s leading telecommunications service providers, today said that it has prepaid Rs. 8,465 crores to the Department of Telecom (Government of India) against spectrum acquired in 2016. These liabilities carried an interest rate of 9.3 per cent."
This repayment clears its deferred liabilities for spectrum purchased in 2016. By settling these dues ahead of schedule, Airtel is reducing its debt burden, with an added benefit of saving on interest payments that stood at a high 9.3 per cent.
Over the years, Airtel, one of the leading telecom operator in the country has made multiple payments to keep clear its spectrum liabilities ahead of time.
Furthermore, between 2012 and 2015, the telecom operator prepaid Rs 7,904 crore covering all deferred dues related to spectrum acquired in auctions. This early repayment can also be considered a smart financial decision as the liabilities can carry even higher interest rates of 9.5 per cent and 10 per cent.
Back On Track: Is BSNL Making A Comeback & Challenging Airtel, Vi, And Jio? Here’s What The TRAI Data Shows
Earlier, in January 2024, the company also made a significant move by prepaying Rs 8,325 crore which partially covered its due from the 2015 spectrum auction. This early repayment by the company is aimed to cut down its high-interest debt.
Stock performance
The shares of the company today opened at Rs 1,714.00 apiece and reached a low of Rs 1,704.20.
At 3:30 PM IST, the shares of the telecom operator closed at Rs 1,713.35, down by 1.23 per cent.