According to the latest data released by TRAI, the telecom industry has reported 1.75 per cent sequential growth in adjusted gross revenue (AGR) to Rs 656.24 billion in the first quarter of financial year 2024. TRAI added that higher quarterly AGR translated into higher licence fee and spectrum usage charge (SUC) collections for DoT. The licence fee mop-up climbed 1.69 per cent sequentially to Rs 52.46 billion, while SUC collections rose 8.32 per cent on-quarter to Rs 8.18 billion. The sequential growth in SUC collections was sharper on a low base as Vi is believed to have cleared past dues.
Bharti Telecom Limited has increased its stake in Airtel to 39.59 per cent by acquiring an additional 1.35 per cent stake from another promoter group entity, Indian Continent Investment Limited (ICIL) through a Rs 83.01 billion block deal. Following the latest block deal, ICIL’s stake in Airtel has dipped to 4.56 per cent. Meanwhile, ICIL’s stake in the telco was at 5.93 per cent as per Airtel’s September 2023 quarter shareholding filing.
Airtel has initiated the preliminary stages of the initial public offering for its subsidiary, Bharti Hexacom. Airtel owns a 70 per cent stake in the company, while the government owns the remaining 30 per cent through Telecommunications Consultants India Limited. The government expects to fetch around Rs 100 billion from a potential sale of its 30 per cent stake in Bharti Hexacom. Meanwhile, Airtel is likely to retain its 70 per cent stake in the company.
The Competition Commission of India has approved the proposed acquisition by Atlas 2022 Holdings Limited to increase its voting rights/shareholding in Vodafone Group Plc. Atlas 2022 Holdings is a wholly owned subsidiary of Emirates Telecommunications Group Company PJSC (e&). It was incorporated for acquiring and holding e&’s current 14.6 per cent interest in Vodafone.
Airtel’s committee of directors has approved the allotment of 1.42 million fully paid-up equity shares at a conversion price of Rs 518 per equity share to certain foreign currency convertible bond (FCCB) holders. This followed the receipt of notice for conversion of FCCBs of a principal value of $10,188,000 from FCCB holders.
BSNL has reported widening of its net loss to Rs 14.82 billion in the quarter ended September 2023, from Rs 14.7 billion in the previous quarter. The higher sequential loss during the quarter was primarily due to an increase in expenses on advertisement, business promotion and marketing, interconnect usage charge to other operators, higher revenue share to business partners, bad debt write-off and expenses on construction contracts, among others. However, on a year-on-year basis, the company’s net loss narrowed from Rs 20.33 billion in the corresponding quarter last year, largely due to a fall in employee benefit expenses, licence and spectrum fee, finance costs, etc.
As per a regulatory filing, the National Company Law Tribunal (NCLT) Mumbai has approved the sale of some of the real estate assets of Reliance Communications. The filing attached an order of the NCLT’s Mumbai bench in the matter of application filed by the resolution professional of Reliance Communications, seeking approval for undertaking the sale of certain unencumbered assets of the company. In the regulatory filing, the company said that the written order is awaited and will be separately shared with stock exchanges, upon it being made available by the NCLT.
Airtel is reportedly exploring a fundraise of around $1 billion (approximately Rs 83.3 billion) to prepay a significant portion of its remaining dues relating to the spectrum bought in 2015. This fundraise could also include a potential bond issue. According to industry sources, the telco is expected to engage with top global banks such as Barclays and Citi to discuss the preferred mode of fundraising and pricing.
