Tag: Bharti Airtel

Experts discuss latest developments in telecom and what lies ahead

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The recent developments at Vodafone Idea, marked by a successful ₹18,000 crore follow-on public offer (FPO) and the Aditya Birla Group’s strategic ₹2,075 crore equity infusion, have ignited a wave of optimism in the telecom sector.

In a discussion with CNBC-TV18, Sanjay Kapoor, former CEO of Airtel, and telecom expert Prashant Single, and Purushothaman KG, Partner and Head of Digital Solutions and Telecommunications Industry Leader at KPMG India shared their views about the future of Vodafone Idea, tariffs, and the overall competitive landscape of the industry.

Kapoor calls the current situation in the space ‘enigmatic’.

“So as far as the market is concerned and the consumer is concerned, it is the right thing to have happened because three private players in a market like us gives a lot of choice to the consumers. And therefore, brings that balance on customer service and experience over a longer period,” he said.

However, he noted that despite the fresh funds, the overhang of ‘too little too late’ will still be affect Vodafone Idea till it delivers and is back into the game.

Also Read | Vodafone Idea FPO opens today: CEO explains how the funds will be used

Vodafone India plans to use 70% of the funds raised to strengthen its network infrastructure and broaden its market reach.

Prashant Singhal, a telecom expert believes there is more than enough space in the telecom market for a third player to play catch up.

“The response on the Vodafone Idea FPO clearly shows that there is a lot of interest and there is a lot of confidence in the company,” Singhal said.

Also Read | Bharti Airtel says not in any discussion with Vodafone Group for Indus Towers stake

Kapoor thinks the Indian telecom market needs higher pricing.

“We are on the lowest end of the spectrum on pricing when you compare it across the globe,” he said.

According to Purushothaman, the sector is doing well because it is the foundation of the digital economy.

“From a sector perspective, you might have seen quarter-on-quarter (QoQ) growth, improvement in the sector not only from a tariff perspective but also steady subscription growth. The tariffs have improved and that has helped to improve the average revenue per user (ARPU) for most of the operators,” he said.

For more, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel says not in any discussion with Vodafone Group for Indus Towers stake

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Telecom operator Bharti Airtel on Wednesday, April 24, issued a clarification saying that the company was not in any discussion with Vodafone Group to acquire a 21.05% stake in Indus Towers.

The company has no desire to raise its stake beyond what is required for financial consolidation of Indus in the company, Bharti Airtel said in an exchange filing.

“Indus is a provider of critical infrastructure services to the telecom industry and Airtel relies heavily on it. Airtel will therefore always ensure that Indus remains in robust health and financially stable,” it said.

The clarification was in response to a report earlier that said Bharti Airtel was in talks with Vodafone Group to acquire such a stake in Indus Towers. “This deal would have potentially given Airtel a controlling interest in the telecom infrastructure company,” the report stated.

At present, Airtel is the biggest shareholder in Indus Towers with a 47.95% stake while Vodafone Group holds 21.05%. Public shareholding in the telecom infra company stood at 30.97%. If Bharti Airtel were to buy out Vodafone Plc’s shares, its own stake in Indus would go up to 69%.

Following the development, shares of Bharti Airtel Ltd. were trading half a percent higher at ₹1,347.90 apiece on the NSE. The Indus Towers stock fell 1.93% to hit a low of ₹352.70, while Vodafone Idea tumbled over 5% to hit a low of %13.61.

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Bharti twins are now valued at $100 billion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kotak’s Sanjeev Prasad shares outlook on telecom, power, and cement sectors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sanjeev Prasad, MD and Co-head of Kotak Institutional Equities, discussed the key takeaways from the brokerage’s recently-released note covering comprehensive sectoral analysis during an interview with CNBC-TV18.

In the telecom space, Prasad expects a decent tariff increase post-election and that should support earnings momentum for some more time.

Prasad has been positive on Bharti Airtel for a long time. “The stock has done well. That was our call earlier that even if it becomes a two-player market, it will be for Bharti Airtel and Reliance Jio. Now it looks like it will remain a three-player market with Vodafone Idea,” he said.

Also Read | Reliance Industries shares may go up to ₹3,479, say analysts after strong Q4 results

In the power sector, he believes the market is more focused on short-term issues and focusing too much on thermal capacity generation without paying much attention to the long term issues.

However, Prasad says, “The move is clearly towards renewables and that pace will accelerate going forward. Between solar and thermal, it is very clear that solar is much cheaper now,” he said.

He noted that solar modules are now cheaper and aid in lower costs of power.

In the cement sector, he cannot understand how fundamentally a capital intensive sector can have price to earnings (P/E) of nearly 30-35 times

According to Prasad, the P/E cannot be higher than 15-20 times for cement companies.

For more, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel shares hit 52-week high following the launch of international roaming packs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The shares of Bharti Airtel soared to fresh 52-week high on Monday, April 22. This surge in share prices follows Airtel’s announcement of a new offering aimed at simplifying and making international roaming more affordable for travellers.

Airtel has introduced International Roaming packs designed to cater to the needs of customers travelling abroad. “The new packs include access to 184 countries and the tariffs start at as low as Rs. 133/day, making them an affordable option even when compared to local sims,” Bharti Airtel said in an exchange filing.

The new packs grant access to 184 countries, offering features such as unlimited data, voice benefits, in-flight connectivity, and 24×7 contact center support, the company announced.

Airtel highlighted that customers no longer need to subscribe to multiple packs for different destinations. “Airtel has also ensured that customers travelling to these 184 countries no longer need subscribe to multiple packs for various travel destinations and have the convenience to simply choose the duration of travel and enjoy seamless connectivity anywhere in the world through one single pack; and do this in the most affordable manner,” Airtel stated.

Airtel has also introduced an auto-renewal feature for frequent travelers, eliminating the need for manual renewal. Through the Airtel Thanks app, customers can enjoy hassle-free travel with automatic activation and renewal of their roaming pack.

The shares of the company slipped off highs later in the day. At 3:15 pm, the stock was trading 0.76% higher at ₹1,298.75 apiece. 

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sunil Mittal overtakes Lakshmi Mittal in net worth as Airtel stock hits new high

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A 70% rally in shares of Bharti Airtel over the last year has taken billionaire Sunil Mittal’s net worth to $19.7 billion. In the process, the founder and chairman of Bharti Enterprises has not only entered into the top ten wealthiest people in the country but also surpassed the fortune of steel tycoon Lakshmi Mittal.

While the fortune of Sunil Mittal & family surged $3.8 billion since January 2024, Lakshmi Mittal witnessed an erosion of nearly $1 billion in his wealth during the same period. According to the Bloomberg Billionaires Index, Sunil Mittal, who possessed 13th rank at the beginning of the year, also surpassed developer KP Singh’s net worth and Kumar Birla of Aditya Birla Group.

Source: Bloomberg

The majority of Mittal’s fortune is derived from his 28% stake in Bharti Airtel. His stake is held through closely-held Bharti Enterprises and other holding companies. Apart from Bharti Airtel, the promoter also held 70% of the newly listed mobile services provider Bharti Hexacom. In contrast, the stock of ArcelorMittal has come off 11.4% in the last year after analysts foresee muted demand rebound in many of its core markets.

Also Read: Tata Group in talks to buy Pegatron’s iPhone operations as soon as May

Lakshmi Mittal is chairman and largest shareholder of ArcelorMittal, the world’s biggest steelmaker outside of China. The Luxembourg-based company has mining, energy and refining operations in 59 countries. The company reported a net revenue of $68.3 billion in 2023, whereas its profit for the year stood at $ 919 million.

With a market capitalisation of $91.84 billion (including partly paid-up shares), Bharti Airtel is ranked fourth after Reliance Industries, TCS and HDFC Bank. Further, its newly listed subsidiary –Bharti Hexacom—had a valuation of close to $6 billion as of Friday’s close.

Analysts at Jefferies expect Bharti Hexacom to deliver 16% and 21% annualised growth in revenue and earnings before interest taxes and depreciation (EBITDA) over FY24-27. The brokerage, which initiated coverage with a “Buy” rating on the stock observed, “ It offers a way to invest in those parts of Bharti Airtel’s business that are growing faster.”

Also Read: ICICI Bank to consider raising funds via debt securities

Shares of Bharti Airtel surged to a new high of ₹1296.50 on the NSE in Friday’s trade.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel at lifetime high on deal with Dialog Axiata to merge Sri Lanka operations

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bharti Airtel Ltd shares gained more than 5% on Thursday after the company announced entering into a definitive agreement with Dialog Axiata PLC and Axiata Group Berhad to merge their operations in Sri Lanka.

The leading telecom operator informed the stock exchanges that, as per the agreement, the three entities will combine their operations in the island nation.

As per the deal, Dialog will acquire a 100% stake in Airtel Lanka. Dialog will issue ordinary voting shares to Bharti Airtel, up to 10.355% of the total issued shares to Dialog via a share swap transaction.

“The transaction is subject to the approval of Dialog’s shareholders and is pending the completion of specific conditions outlined in the Share Sale Agreement, including clearance from the Colombo Stock Exchange (CSE) and completion of other applicable legal, corporate and regulatory compliance procedures,” Bharti Airtel said in a release dated April 18.

The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has already granted its approval for the merger plan, the telco informed the stock exchanges.

Dialog Axiata PLC is a subsidiary of Axiata Group Berhad, which is one of the leading Quad-play connectivity providers in Sri Lanka. The telco has the largest FDI in Sri Lanka with a total investment of around $3.25 billion.

#JustIN | Dialog Axiata, Axiata Group & #BhartiAirtel sign a definitive agreement to combine their ops in Sri Lanka

Dialog will acquire 100% of the issued shares in Airtel Lanka

Dialog will issue to Bharti Airtel, ordinary voting shares which will amount to 10.355% equity of… pic.twitter.com/4WbZewbabW

— CNBC-TV18 (@CNBCTV18Live) April 18, 2024

On the other hand, Airtel Sri Lanka has been the fastest growing telecom services provider in the country reaching 1 million customers while it started its operations in 2009.

This merger is expected to help achieve economies of scale, which in turn can boost the capital expenditure in this sector leading to high-speed broadband connectivity, voice and value added services, operational betterment, and most importantly, it can help in saving cost by reducing infrastructure duplication.

Ashish Chandra, Chief Executive Officer, Bharti Airtel Lanka (Private) Ltd commented, “The integration of Dialog and Airtel Lanka operations will unlock new opportunities for innovation and growth, and this will benefit consumers.”

Shares of Bharti Airtel were trading 5.04% higher at ₹1,277.80 apiece on the NSE at 2:40 PM.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mobile bills may go up post the election

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mobile bills are likely to rise as Balaji Subramanian, Vice President of IIFL Securities, expects telecom companies to increase tariffs post-elections.

“The first round of tariff increases should happen probably after the election. So, sometime in the second half of calendar 2024. And if you look at this industry, typically, price hikes happen every two years. So, we had something in late 2019, in 2021; this time since we are in the run-up to elections and the middle of calendar year 2026, we could see another tariff increase of 15-20%,” he told CNBC-TV18.

Subramanian believes most companies require substantial price increases in the next 2-3 years.

He also mentioned that in the broader industry context, perhaps after the elections, Reliance might contemplate making Jio platforms publicly available.

Therefore, leading up to that event, a rise in tariffs would enhance the profitability of all companies in the industry.

Also Read | Vodafone Idea FPO price band fixed between ₹10-₹11; Check lot size and date here

Meanwhile, Vodafone Idea announced in a filing on April 12 that it has set the price range for its Follow-on Public Offer (FPO) at ₹10 to ₹11 per share. The FPO is scheduled to begin on April 18 and end on April 22. The company aims to raise ₹18,000 crore through this FPO.

Also Read | Indian telecom regulator initiates consultation on spectrum auction in crucial 5G bands

For the entire interview, watch the accompanying video

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel shares can cross ₹1,500 as telco set for best financial performance in 10 years: Analyst

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bharti Airtel shares have the potential to rise over ₹280 more, says brokerage firm Antique which has initiated coverage on the telecom company with a ‘buy’ rating and a target price of ₹1,505. The target price implies an upside of more than 23% in the stock price from the April 9 close.

Bharti Airtel shares trade almost 1.5% higher at ₹1,219.50 on BSE at 10:20 am on April 10. In the past year, the stock has made investors richer by 58% as against the benchmark Sensex’s 25% rise during the same period.

Antique believes the telecom company is set to ride its best financial performance phase in over a decade driven by tariff hikes, 2G upgradation and strong growth of the enterprise. The brokerage expects return ratios to top 20%.

Also Read: Analyst warns this telco’s share could plummet over 60% to ₹5 — Here’s the reason

In fact, following the October to December 2023 results, Morgan Stanley pointed out that Airtel’s higher-than-expected capex led to lower free cash flow (FCF) and that higher finance lease obligations resulted in higher net debt versus expectations.

As per its latest note, Antique expects the telco to witness historic high free cash flows that will drive balance sheet deleveraging.

The brokerage also pointed to certain challenges like Bharti Airtel choosing a different 5G rollout path versus key competitors. However, it believes it is unlikely to dent the firm’s subscriber base or growth significantly.

The data released by the Telecom Regulatory Authority of India (TRAI) earlier this week shows that the Sunil Mittal-led firm upped its wireless subscriber count by 7.78 lakh, taking its mobile tally to 15.30 lakh in February.

Also Read: Why telcos might show limited interest in the upcoming spectrum auction

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Hexacom set to launch IPO on April 3

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Telecom operator Bharti Airtel’s subsidiary Bharti Hexacom’s initial share sale will open for public subscription on April 3. The three-day initial public offering (IPO) will conclude on April 5, and the anchor book of the offer will open for a day on April 2, according to the Red Herring Prospectus (RHP) filed on Friday. This will be the first IPO in the financial year 2024-25.

The maiden public issue is purely an offer-for-sale of up to 7.5 crore shares (representing a 15% stake) by existing shareholder — Telecommunications Consultants India Ltd. The OFS size has been reduced to 7.5 crore from 10 crore equity shares planned earlier.

Since the IPO is completely an OFS, the entire proceeds will go to the selling shareholders, and the company will not receive any funds from the issue. Bharti Hexacom obtained its observation letter on March 11 from the capital markets regulator Sebi to float the public issue.

Promoter Bharti Airtel holds a 70% stake and the remaining 30% shareholding is held by state-run Telecommunications Consultants India Ltd. Bharti Hexacom is a communications solutions provider, offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India.

It is among the top global mobile operators in terms of number of customers and India’s largest integrated communications solutions provider in terms of consolidated operating revenue as of fiscal 2023. In spite of strong topline and operating figures, the company reported a 67.2% year-on-year fall in net profit of Rs 549.2 crore for FY23. This decline was caused by a larger base as a result of exceptional gains of Rs 1,951.1 crore in the previous year.

SBI Capital Markets Ltd, Axis Capital, BOB Capital Markets, ICICI Securities and IIFL Securities are the book-running lead managers to the issue. The company’s equity shares will be listed on the BSE and NSE.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow