Bharti Airtel won't avail equity conversion on interest in deferred payment

Bharti Airtel has informed the Department of Telecommunications (DoT) that it will not avail the option of conversion of interest on deferred spectrum and adjusted gross revenue (AGR) dues into equity.

"In furtherance to the earlier communication dated October 25, 2021, and in reference to the notification dated October 14, 2021, issued by the Department of Telecommunications (DoT) to the Company, we wish to inform you that the Company has confirmed to DoT that it will not avail the option of conversion of the interest on deferred spectrum and AGR dues into equity," the telco said in a regulatory filing on Friday.

Also Read: After Voda Idea, Bharti Airtel defers spectrum auction instalments for 4 years

Airtel is likely to pay dues amounting to Rs 58,254 crore, of which it has already paid Rs 18,004 crore.

The telco's latest move came as a surprise since its rival Vodafone Idea (Vi) was expected to avail both moratorium and equity conversion.

In October last year, Airtel had accepted the government's four-year moratorium on the spectrum and AGR payments.

The telco's chief Sunil Mittal had earlier said that the company will go for the four-year moratorium on the spectrum and AGR dues, which will help it preserve a cash expenditure of Rs 35,000-40,000 crore that would be utilised for network and other capital expansion plans.

Also Read: Vodafone Idea board approves deferment of AGR dues payment for four years