Business & Investment

Bharti Airtel Shares: Bharti Surprise Fund Negotiations Raise Shares by 4%

Mumbai: Shares rose more than 4% on Tuesday, the day after India’s second-largest telephone company announced that it would consider raising preferred stock to investors outside the promoter group.

There is a report of Amazon, Google also Microsoft You have the potential to become a potential investor.

Airtel, Amazon, Google and Microsoft declined to comment.

The latest funding decisions of the career have surprised the market. “I was surprised because I didn’t need capital right away,” said Jeffreys, a securities firm.

The company’s share price rose 3.23% at BSE on Tuesday, closing at Rs 711.90.

Analysts point out that Airtel’s balance sheet is sound and recently prepaid a spectral debt worth Rs 15,500. The call for preferred stock issuance will take place within a few months of the 21,000 rupee rights issue.

In a memo, Jeffreys said strategic investors can specifically enhance Balti’s enterprise / digital products.

Telephone companies are fiercely competing with market leaders Reliance Jio With Infocomm (Jio)

Build an enterprise portfolio in addition to something like Tata Communications. “Potentially, partnerships with hyperscalers can help us grow our enterprise business even further,” Jeffreys said in a report.

According to senior telecom analysts, Airtel can see major digital / technology players as strategic and financial investors. “Global digital companies or tech majors will bring their expertise when Airtel competes with the Jio Platform, which has similar strategic investors,” said a Mumbai-based analyst.

Jio Platforms, Jio’s digital arm, has raised 1,52,055.45 rupees from 14 investors including Meta (at that time Facebook), Google, Intel, Qualcomm, KKR, General Atlantic, Mubadala and PIF.

However, Jeffreys warns that a capital increase could “overhang Balti’s share price in the short term, especially if the problem is large.”

Recently, Bharti Airtel has invested 6,000 rupees to acquire a 20% stake in the DTH business from Warburg Pincus and a 5% stake in Indus Tower from Providence Partners and others.

“The potential increase in Indus Towers shares funded through the issuance of shares could be seen as negative, as it could lead to significant dilution,” said a securities firm analyst.

However, he added that recent tariff increases should help Bharti increase consolidated sales in 2011 by 20% year-on-year, the highest in 10 years.

On Monday, a career led by Sunil Mittal said the board of directors would meet on January 28 to consider issuing shares through preferential issuance (other than the promoter / promoter group). Required, including approval. ”

Currently, Airtel’s promoter groups, the Mittal family and SingTel, own 55.93% of the telephone companies, the rest being owned by the general public. The Mittal family owns approximately 24.13% directly and indirectly, and SingTel owns 31.72%.

Financing will also take place at a time when telcos, along with Jio and Vodafone Idea, will focus on 5G auctions this year. All three are betting on next-generation technology to become a game changer.

Bharti Airtel Shares: Bharti Surprise Fund Negotiations Raise Shares by 4% Bharti Airtel Shares: Bharti Surprise Fund Negotiations Raise Shares by 4%

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