Idea Cellular up 5% on plan to sell entire stake in tower arm

Idea Cellular shares rallied 5 percent intraday Tuesday after sources close to the telecom operator told CNBC-TV18 that the company is likely to sell 100 percent stake in its tower subsidiary.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney IThe Winning Leap SME Special
Moneycontrol

Home » News » Buzzing Stocks

Nov 29, 2016, 08.23 PM | Source: Moneycontrol.com

Idea Cellular up 5% on plan to sell entire stake in tower arm

Idea Cellular shares rallied 5 percent intraday Tuesday after sources close to the telecom operator told CNBC-TV18 that the company is likely to sell 100 percent stake in its tower subsidiary.

Like this story, share it with millions of investors on M3

Idea Cellular up 5% on plan to sell entire stake in tower arm

Idea Cellular shares rallied 5 percent intraday Tuesday after sources close to the telecom operator told CNBC-TV18 that the company is likely to sell 100 percent stake in its tower subsidiary.

Post Your Comments

Share Cancel

Idea Cellular shares rallied 5 percent intraday Tuesday after sources close to the telecom operator told CNBC-TV18 that the company is likely to sell 100 percent stake in its tower subsidiary.

The Aditya Birla Group company has dropped its earlier plans to sell a minority stake in the business and now it is looking to sell 11,000 telecom towers for close to USD 1 billion.

Idea Cellular has reached out to America Tower Corp, Bharti Infratel and Brookfield for tower sale, sources said, adding that it is likely to retain its stake in Indus Towers.

Indus Towers is a joint venture between entities of Bharti Infratel, Vodafone India and Aditya Birla Telecom.

Usually when core telecom sector becomes competitive, companies are likely to sell-off tower assets and use the proceeds to pump up telecom operations, repay debt or fund expansion and network rollout, Nitin Soni of Fitch Ratings said.

With retaining underweight rating and target price of Rs 60 on Idea, Morgan Stanley says the company has 9,800 of its own towers with a tenancy ratio of 1.67x. It values these towers at around USD 1.1 billion, assuming Enterprise value per tower of USD 1,08,000, a 5 percent discount to Bharti Infratel's EV/tower at current market price.

Including Idea's 16 percent stake in Indus, the brokerage house values its overall tower portfolio at USD 3.3 billion.

At 11:35 hours IST, the stock was quoting at Rs 79.25, up Rs 3.45, or 4.55 percent on the BSE.

Buy, Hold, Sell ? Hear it first on M3
Idea Cellular up 5% on plan to sell entire stake in tower arm

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login