Rajiv Sharma, head of research of SBICAP Securities on Wednesday said Bharti Airtel buying stake in Bharti Infratel may be a bet on long-term story.
The purchase was carried out via block deals and are within norms for creeping acquisition -- which limit promoter purchases at 5 percent of equity in a year.
He said, "Bharti Airtel is definitely trying to set a reference value, a downside support in terms of share price of Bharti Infratel."
"Irrespective of what happens to telecom market structure, 5G will need a lot of telecom infrastructure. So maybe Airtel is taking a bet on the longer-term story as well. At the same time, Bharti is a stellar in the tower company. Airtel has suggested in the past the company would like to bring down their stake and improve their own balancesheet," Sharma said.
For more, watch video
Earlier today Bharti Airtel had purchased a 4.9 percent stake in Bharti Infratel, the group's tower infrastructure arm.
The purchase was carried out via block deals and are within norms for creeping acquisition -- which limit promoter purchases at 5 percent of equity in a year.
He said, "Bharti Airtel is definitely trying to set a reference value, a downside support in terms of share price of Bharti Infratel."
"Irrespective of what happens to telecom market structure, 5G will need a lot of telecom infrastructure. So maybe Airtel is taking a bet on the longer-term story as well. At the same time, Bharti is a stellar in the tower company. Airtel has suggested in the past the company would like to bring down their stake and improve their own balancesheet," Sharma said.
For more, watch video
First Published: Dec 2, 2020 5:03 PM IST
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