Shares of telecom major Bharti Airtel rose 4 per cent today after the firm said it would buy a 4.7 per cent stake in Indus Towers from Vodafone Group for about Rs 2,388 crore. The transaction will be executed at a price of Rs 187.88 per share, added the telco in a company filing.
The large-cap stock touched an intraday high of Rs 707.03, rising 3.98 per cent against the previous close of Rs 709.25 on BSE. Market cap of the firm rose to Rs 4.02 lakh crore on BSE. Later, the stock closed 3.40 per cent higher at Rs 733.35. A total of 2.37 lakh shares of the telco changed hands amounting to a turnover of Rs 17.09 crore on BSE. Bharti Airtel stock stands higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages moving averages.
The share has gained 40.41 per cent in one year and risen 7.24 per cent since the beginning of this year.
”…pursuant to the above referred agreement dated February 25, 2022 entered inter alia between certain affiliates of Vodafone Group Plc (including Euro Pacific Securities), the company and Nettle, the transaction shall be executed at Rs 187.88 per share basis the agreed price formula in the agreement, aggregating to Rs 23,880.62 million,” Airtel said in a regulatory filing.
This will be upon fulfillment of all conditions precedent as agreed by the parties under the agreement, it added.
Airtel said agreement pertained to acquisition of about 4.7 per cent equity in Indus Towers by the company and/or Nettle Infrastructure Investments, a wholly-owned subsidiary, from the Vodafone Group affiliate, Euro Pacific Securities.
Motilal Oswal has maintained a buy call on the Airtel share with a target price of Rs 910.
“The firm hosted an analyst meet underscoring three key things – a) multiple growth engines, b) premiumization and digital shift, moving away from a dumb pipe and c) its network capabilities and 5G preparedness – biting the bullet. Further, there could be monetization/value unlocking opportunities in a few businesses. We certainly believe the stock has multiple levers,” the financial services company said.
Jefferies gave a target price of Rs 860.
“Key message from analyst day was that it is well positioned to grow its India-mobile, home broadband & enterprise business. The firm is leveraging its database of 350 million plus users to scale up its Airtel Ads, digital marketplace and Airtel loans business,” the global brokerage house said.
