Bharti Airtel has called in Rs 15,800 crore from shareholders through the final installment on partly paid shares issued under its 2021 rights issue, completing the last stage of a capital raise that was structured to be collected in phases.
The telecom operator has asked investors to pay Rs 401.25 per share on the partly paid shares, with the payment window closing on March 16. Trading in these shares was suspended on February 6 and they are expected to convert into fully paid equity shares by the end of March, after which they will trade on stock exchanges like regular shares.
The call represents around 75% of the Rs 21,000-crore rights issue announced in September 2021. Unlike conventional rights offerings where investors pay the entire amount upfront, Airtel structured the issue through partly paid shares, allowing shareholders to pay the balance in stages as the company made calls on the outstanding amount.
Strengthening the Balance Sheet
Analysts said the inflow will strengthen the company’s balance sheet and accelerate debt reduction. Analysts at CLSA said the Rs 15,800-crore inflow, combined with strong operating cash flows, could help Airtel eliminate bank debt.
The brokerage said the free cash flow was generated after capital expenditure of Rs 31,500 crore. Airtel’s net debt excluding leases, adjusted gross revenue dues and deferred spectrum liabilities stood at Rs 18,900 crore in the December quarter of FY26.
The company’s cash generation has strengthened over the past few years, supported by tariff increases, rising data consumption and the expansion of 4G and 5G services. Analysts expect this improvement in operating cash flows to give Airtel greater flexibility to reduce leverage while continuing investments in network expansion and digital services.
The telecom operator has said it will continue to expand network coverage and scale its home broadband business through fibre-to-the-home and 5G fixed wireless access.
The rights issue allowed existing shareholders to subscribe to one share for every 14 shares held at an issue price of Rs 535 per share, implying a discount of about 10% to the market price at the time and an equity dilution of roughly 7%.
Navigating Tariff
However, brokerages have turned cautious on near-term growth prospects. Analysts at Jefferies have trimmed revenue and earnings estimates for the company by 6–8%, citing expectations of a delay in the next telecom tariff increase.
“The chances of a tariff hike by June 2026 are low due to potential inflationary pressures from rising energy prices and delays in regulatory changes related to IPO norms,” Jefferies said. The brokerage now expects a single tariff hike of about 15% only by December 2026.
Even so, analysts said Airtel’s profitability is unlikely to be significantly affected by higher energy prices as the company has reduced energy costs across its network through greater use of renewable power and lower diesel consumption.