Bharti Airtel shares dip 3% after huge trade; promoter entity likely seller

As per media reports, Bharti Airtel's Promoter entity, Indian Continent Investment, is likely to sell a 0.8 per cent equity stake in the company via a block deal

Shares of Bharti Airtel dipped 3 per cent to ₹1,868.80 on the National Stock Exchange (NSE) amid heavy volumes. In comparison, the Nifty 50 was down 0.34 per cent at 24,512.

 

Till 09:30 AM, a combined 89.24 million shares representing 1.6 per cent of the total equity of telecom services provider have changed hands on the NSE (77.32 million shares) and BSE (11.92 million shares). The names of the buyers and sellers are not ascertained immediately.

 

Meanwhile, in the past month, Bharti Airtel has underperformed the market by falling 8 per cent, as compared to a 4 per cent decline in the Nifty 50. However, in the past year, the stock price of the company has appreciated by nearly 30 per cent, as against a 1.7 per cent gain in the benchmark index.  Track LIVE Stock Market Updates Here

 

Bharti Airtel's promoter entity is the likely seller

Moneycontrol reports suggest that Bharti Airtel’s Promoter entity, Indian Continent Investment, is likely to sell a 0.8 per cent equity stake in the company via a block deal. The block size is expected to be around ₹9,310 crore, and the floor price for the deal is likely set at ₹1,862 per share.

Bharti Airtel brokerages view post Q1 results 

From a long-term perspective, analysts at Axis Securities believe Bharti Airtel would continue to gain market share, backed by the highest penetrations, and with minimum Capex requirements. Therefore, with a stronger digital portfolio supported by rising per-user data and growing business verticals, the brokerage firm is positive about the company’s future growth.  Analysts maintain a 'Buy' recommendation on the stock with a target price of ₹2,300 per share. 

 

JM Financial Institutional Securities reiterate 'Buy' on Bharti as the brokerage firm believe the industry's wireless average revenue per user (ARPU) will grow at 12-13 per cent compounded annual growth rate (CAGR) in the next 3-5 years given the consolidated industry structure, to ensure a '3+1' player market and higher ARPU requirement for Jio not only to justify its significant 5G capex but also given its potential listing plans. 

 

Further, the potential 5G monetisation and fixed wireless access (FWA) rollout provides significant upside risk over the long term. Moreover, there is huge FCF generation potential over the next 4-5 years, with the next big jump in capex, largely related to 6G, which is the most likely 2030-onwards story, the brokerage firm said with a target price of ₹2,240 per share. 

About Bharti Airtel

Headquartered in India, Airtel is a global communications solutions provider with over 590 million customers in 15 countries across India and Africa. The company also has its presence in Bangladesh and Sri Lanka through its associate entities. The company ranks amongst the top three mobile operators globally, and its networks cover over two billion people.