HomeMarket NewsAdani Enterprises stock up 2% after group announces participation in 5G auction, Bharti Airtel shares crash

Adani Enterprises stock up 2% after group announces participation in 5G auction, Bharti Airtel shares crash

Adani Enterpises stock price: Shares of Adani Enterprises rose over 2 percent on Monday days after Adani Group said it would participate in the 5G spectrum.

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By CNBCTV18.com July 11, 2022, 2:26:40 PM IST (Updated)

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Adani Enterprises stock up 2% after group announces participation in 5G auction, Bharti Airtel shares crash
Shares of Adani Enterprises
rose over 2 percent on Monday days after Adani Group said it would participate in the 5G spectrum.

“As India prepares to roll out next-generation 5G services through this auction, we are one of the many applicants participating in the open bidding process. We are participating in the 5G spectrum auction to provide private network solutions along with enhanced cyber security in the airport, ports and logistics, power generation, transmission, distribution, and various manufacturing operations,” Adani Group said in a statement.

At 11:16 am, shares of Adani Enterprises were trading 1.4 percent higher at Rs 2,324.75 on the BSE.



The conglomerate clarified that its intention was not to be in the consumer mobility space.

Also Read | Adani Group planning to enter telecom spectrum auction on July 26

Applications for participating in the July 26 auction of airwaves, including those capable of providing fifth-generation or 5G telecom services such as ultra-high-speed internet connectivity, closed on Friday with at least four applications with one being the Adani Group.

The report added that Jio, Bharti Airtel and Vodafone Idea are the three private players in the telecom sector that applied for the auction.

Reacting to this development, other telecom stocks dropped. The most hit was in Bharti Airtel, whose stock cracked nearly 5 percent. Shares of Reliance Industries were down 0.4 percent. Vodafone Idea shares, meanwhile, were unfazed by the news, rising about 4 percent.



BofA Securities said that Adani Group’s foray into the telecom space would be a limited threat in the near term. The foreign brokerage firm considers this news flow to be a negative for other telcos as it increases competition in the upcoming auction bidding as well as in the long-term opportunity to target enterprise space.

The brokerage firm has a ‘buy’ call on Reliance Industries stock and ‘neutral’ rating on Bharti Airtel shares.

Goldman Sachs said while the Adani Group has said it does not intend to be in the consumer mobility space, the brokerage firm believes if Adani Group does end up buying spectrum in the upcoming auction, it could potentially increase competition in enterprise 5G, in addition to opening the doors for the Adani Group to expand into consumer mobile services over time.

Also Read:
Here's what we know about Adani Group's telecom venture



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