The agency expects Bharti Airtel's margins to remain under pressure over next one to two years because of increase in tariff competition besides reduction in lower mobile call connection charges to six paise from 14 paise levied earlier.
Bharti Airtel's mobile tower arm Bharti Infratel and Vodafone hold 42 per cent each in India's largest mobile tower firm Indus Towers and the rest is held by Idea Cellular.
Bharti Airtel, India's largest telecom operator, will primarily use the proceeds from this sale to pare its debt, a company statement said.
Three Pillars Pte Ltd, an affiliate of the Qatar Foundation, may have sold its 5 percent stake (about 19.99 crore shares) through block deals today.
In an interview to Latha Venkatesh, Surabhi Upadhyay & Anuj Singhal on CNBC-TV18, Udayan Mukherjee shared his views and readings on the market, specific sectors and stocks.
A number of telecom operators have either merged or are in process of merging with large operators. Some of the companies have exited from telecom companies by selling their spectrum to Bharti Airtel.
"Considering the data explosion in India... to accelerate our 4G roll out in terms of coverage and also build additional capacities in existing geographies..our capex forecast for the year is being upped from initial guidance of Rs 20,000 crore to Rs 25,000 crore," Bharti Airtel Chief Financial Officer Nilanjan Roy said during earnings call.
CLSA has upgraded Bharti Airtel to buy from underperform and raised target price to Rs 637 from Rs 430 per share as consolidation & data have revived long-term growth.
Telecom major Bharti Airtel today said a few "reputed" global investors have approached it for buying a controlling stake in its mobile tower arm Bharti Infratel.
Revenue from operations slipped 0.8 percent quarter-on-quarter to Rs 21,776.9 crore for September quarter, which was largely in line with estimates.
Airtel's Africa business is expected to clock revenue growth of 2 percent (which contributed 22 percent to total revenue) at Rs 4,972 crore. Analysts expect the company's impressive run in Africa to continue, with margins expansion.
Bharti Telecom will acquire 184,710,183 equity shares of Bharti Airtel from another promoter firm of the telecom major, Indian Continent Investment Limited (ICIL), at price of Rs 417.35 per share derived with weighted average market price of 60 days trading period, as per the filing.
Promoters of Bharti Telecom and Bharti Airtel - Mittal family owns 51 percent stake in Bharti Telecom and 30 percent stake in Bharti Airtel.
The latest offering comes under the 'Mera Pehla Smartphone' initiative by Airtel. Earlier this month, the Sunil Mittal company had tied up with Karbonn Mobiles to bring 4G smartphone at an effective cost of Rs 1,399.
There is clear consolidation in the telecom space where an unsustainable perfect competition structure is dying down & a more sustainable structure is coming into shape, Sanjay Kapoor, Former Chairman, Micromax.
Sharekhan recommended hold rating on Bharti Airtel with a target price of Rs 450 in its research report dated October 13, 2017.
Bharti Airtel rallied 21 percent in October month so far.
The telco is seeking to shift 3G users to 4G via a VoLTE communication standard within the next few months, sources have Mint.
The midcap Index which was again the outperformer, up 1.29 percent led by Jain Irrigation Systems and Jaiprakash Associates while Bajaj Auto, ICICI Lombard General Insurance Company, MphasiS and Vedanta were some of few stocks that hit 52-week high on the NSE.
ICICI Direct is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 500 in its research report dated October 13, 2017.
"While consolidation activity is positive for the industry in the long-term, we still expect competition to remain intense over the next 12-18 months as leading operators -- like Bharti, Vodafone India and Reliance Jio Infocomm Limited - look to protect and grow market share," it said.
S&P said however that Airtel's rating is "unaffected" by its recently-announced acquisition of the Tata Group firm. "...in our view, this deal increases integration risk for Bharti because the company will be simultaneously integrating the operations of Telenor India (acquired last fiscal) and Tata Teleservices over the next 12-18 months, while responding to the intense competition," it said.
The deal, executed through their respective subsidiaries, will create Ghana's second largest mobile operator with nearly 10 million subscribers and USD 300 million in revenue.
Motilal Oswal is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 470 in its research report dated October 12, 2017.
Market watchers have given a thumbs up to the acquisition that involve Airtel taking over the customers and spectrum of Tata Teleservices and Tata Teleservices Maharashtra in a cash free and debt free deal. Some analysts have even gone to the extent of saying that the takeover places the Sunil Mittal company to potentially "retain" the numero uno position even post Idea-Vodafone merger.