For every Rs 100 earned, Rs 35 goes to government: Sunil Mittal

For every Rs 100 of revenue, Rs 35 go in various forms of levies said Airtel Chairman Sunil Mittal.

On Monday Chairman Sunil Mittal said, “Airtel’s Rs 21,000 crore fund-raising plans will give the firm the fuel to shift to a higher gear and tap large opportunities by accelerating investments in the rollout of 5G services, fibre, and data centre business.”

“The industry has been urging the government to address some pressing issues inhibiting continued investments in the sector and added that the taxes on the industry remain high,” Mittal added.

In an investor call on the company’s fundraising plans Chairman Mittal said, “For every Rs 100 of revenue, Rs 35 go in various forms of levies. We hope that as we step up and do our part, the government will also favourably look at some of the genuine demands of the industry, enabling a multiplier effect and positive outcome.”

Adding to his statement chairman said, “Airtel has the opportunity to be the tip of the spear for the new digital economy and take India into the next phase of growth.”

The investments would be channelised in areas like 5G, fibre, and data centre business.

The capital raise will give the company the “fuel to grow” and “go extra mile” to leverage opportunities that are “around the corner”, he said.

Chairman Mittal said, “This capital will help improve the leverage position for the company and simultaneously provide the fuel to accelerate investments across several parts of our portfolio to drive for competitive and profitable growth.”

Estimated by the Telecom czar, the industry’s ARPUs (Average Revenue Per User) would reach Rs 200 per user per month and eventually move to Rs 300 by the end of the current financial year.

On Sunday, Bharti Airtel’s board approved raising up to Rs 21,000 crore by way of the rights issue, at a price of Rs 535 per share.

The promoter group of the company would altogether subscribe to the full extent of their aggregate rights entitlement. As informed by the company they will also subscribe to any unsubscribed shares in the issue.

In the company, promoter holding stands at about 55.8 per cent, while the public holds 44.09 per cent.

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time