The wave of consolidation continues in the telecom space. Tata Teleservices (Maharashtra) will merge with India's top service provider Bharti Airtel in a "debt-free" and "cash-free" deal.
In an interview to CNBC-TV18, Naveen Kulkarni, Co-Head of Research at PhillipCapital spoke about what this mean for the companies involved and the stocks.
The deal is positive for Bharti Airtel and it can add Rs 30-35 to the target price for Bharti, said Kulkarni.
He further said that the deal with Tata Tele will add 400 bps to Bharti Airtel's revenue market share.
"I believe the employees will keep exiting through the year so the number of employees that Bharti will have to retain will be a much-much smaller numbers," he said.
Talking about Reliance Communications and Aircel, he said the debt for RComm is higher, so not very sure about it.Watch accompanying video for more details.