TRENDING ON ONEINDIA
- India Suspends LoC Trade With Pakistan
- IPL 2019: DC vs MI: Live Updates
- Jaguar I-Pace Electric SUV Is The World Car Of The Year
- Kalank Movie Review: Not Love, It's The Weak Story Which Ends Up As A Bane!
- Here's How To Play PUBG Mobile On PC
- 7 Best SBI Mutual Fund Schemes To Invest Through SIP
- Kareena Kapoor Khan Ups The Diva Quotient With This All Yellow Bold Outfit
- Rourkela: A Weekend Getaway
Airtel’s 4.49 % stake sale in Bharti Infratel is credit positive: Moody
There is no immediate impact on Airtel’s ratings and outlook
According to the new report by rating firm Moody's, Airtel's 4.49 percent stake sale in Bharti Infratel is credit positive.
However, there is no immediate impact on Airtel's ratings and outlook, the report said
The stake sale in Bharti Infratel is credit positive as it is in line with the management's commitment to strengthen the telco's balance sheet and reduce debt, but there is no immediate impact on Bharti's ratings and outlook, the report added.
We are cautious on Bharti's operating performance over the next 12 months as we expect heightened competition, revamping of pricing plans and ongoing pricing pressures to persist in the Indian telecom sector. Also, lower interconnect usage charges, implemented on 1 October 2017, will have a negative impact on Bharti's profitability over the next 12-24 months," Moody's further added.
The telco has recently announced that it sold over 83 million shares of its tower arm Bharti Infratel, worth Rs 3, 325 crores($510 million).
The sale was for a total consideration of over Rs 3,325 crore ($510 Million) and was executed at a price of Rs. 400.6 per share, representing a discount of
3.6 percent to the previous day's closing price. The allocation was done to global investors, fund managers and long-only funds, including many repeat investors. Led by healthy investor appetite, the deal was upsized by over 25 percent.
"Bharti Airtel will primarily use the proceeds from this sale to reduce its debt. Following the closure of this transaction, Bharti Airtel and its wholly owned subsidiaries together have an equity holding of 53.51 percent in Bharti Infratel," the company said in a filing to the Bombay Stock Exchange.