Bharti Tele-Ventures has proposed to raise more funds for expansion. It has informed the Bombay Stock Exchange that it is considering several options, including issue of fresh equity shares, convertible debentures, foreign currency convertible bonds or other equity-linked instruments, syndicated loans, non-debenture bonds or other debt instruments, for raising the funds.

"This is a routine matter. We are discussing various options for raising funds and how much we need to raise at present. There is, however, no pressing need for funds," said Akhil Gupta, joint managing director, Bharti group.

The Bharti board will meet on March 25 to discuss the issue. The company had earlier said it would invest around $500-600 million in network expansion this year, and most of this would be funded through internal accruals.

Bharti had recently raised around $315 million from ABN Amro Bank at an interest rate of 5.5 per cent.

The funding programme consisted of three components: a $125 million syndication loan, a $160 million buyer's credit facility and a $30 million supplier's credit facility. The company has a net debt-funded equity ratio of less than 0.65.

In the recent past, Bharti Tele-Ventures has attracted over $1 billion equity investment by its partners, led by Singtel and Warburg Pincus.

In February, Bharti had said it would raise around $500 million through external commercial borrowings, and a significant part of this would be used for debt servicing.

Bharti currently has 16 mobile licences and plans to set up its network in five new circles, including Uttar Pradesh (east), Orissa, West Bengal, Jammu & Kashmir and Bihar.

It is also planning to enter the Rajasthan mobile market either by buying a unified licence or by acquiring Hexacom Cellular, which is owned by Shyam Telecom and Telecommunication Consultants of India.

The company is also looking at acquiring other mobile companies, especially with the intra-circle merger guidelines in place.

Bharti needs significant investment for upgrading its existing network to cater to the growing cellular subscriber base.