The share price of telecoms provider Bharti Airtel surged on Thursday after the company prepaid for the purchase of 5G spectrum. Bharti Airtel share price rose 1.59% to close at Rs. 733.25 on BSE on Thursday. The script hits a high of Rs. 735.70 during the day.
Bharti Airtel The stock price has increased by 4.5% in the past two trading sessions.
The company’s shares surged after making a prepayment for 5G spectrum. Bharti Airtel on Wednesday said it paid Rs. 8,312.4 crore to the Department of Telecommunications (Government of India) for spectrum fees acquired in recently concluded 5G auctions.
Airtel has prepaid the 2022 spectrum fee for four years. The company believes this prepayment along with a four-year deferment of spectrum fees and AGR-related payments will free up future cash flows and allowing Airtel to dedicate resources to focus entirely on 5G deployment.
In the last year, Airtel also cleared Rs. 24,333.7 percent of its deferred payment spectrum before the expected maturity.
The government announced that the telecom operator was allocated spectrum within hours of making the payment.
Bharti Enterprises President Sunil Bharti Mittal praised the government’s rapid allocation of 5G spectrum. “No fuss, no tracking, no running around and no high demands. It’s easy to do business in the workplace in its full glory. Over 30 years of my first experience. with the DoT (Department of Telecommunications), This is the first time! Business is going as usual,” Mittal said in a statement.