Airtel gets board nod to raise up to Rs 10,000 crore through NCDs

NEW DELHI: Amid stiff competition from Reliance Jio, telecom major Bharti Airtel has received its board approval to raise up to Rs 10,000 crore through non-convertible debentures.

"... the board of directors of the company in their meeting held on January 24, 2017... have approved issuance of non-convertible debentures ( NCDs) by the company on a private placement basis," Airtel said in a BSE filing.

The outstanding under these NCDs shall at all times will be within the overall borrowing limits of the company and "be a subject to a cap of Rs 10,000 crores", the filing said.

The development comes within fortnight of Reliance Jio announcing additional investment Rs 30,000 crore in its network taking the cumulative investment in its business to over Rs 1.9 lakh crore.

Airtel today posted about 54 per cent dip in net profit for the December quarter due to impact of Reliance Jio's free service on its business and partially due to demonetisation.

Airtel has made cumulative investment of Rs 2,89,153.5 crore in its business which includes Rs 2,27,071.8 crore in India till December 31, 2016.

During the October-December 2016 period, Airtel invested Rs 5,371.4 crore in India which includes Rs 4,409.7 crore in mobile business.

Consolidated net debt of Airtel increased by 24 per cent to Rs 97,395.2 crore at the end of December 31, 2016, from Rs 78,451.5 crore in corresponding period a year ago.