Prior to 5G services launch, Bharti Airtel's stock rises 6%

JPMorgan analysts think that Bharti Airtel is one of the major winners from the consolidation of the Indian telecom sector

September 30, 2022 3:00 IST | India Infoline News Service
Ahead of the introduction of 5G services in India on Saturday, October 1, shares of Bharti Airtel rose 6% intraday on Friday and reached a new high of Rs808.85.
For the fourth day in a row, the stock of a telecom services company increased in price. It has increased by 12% over the past month compared to the S&P BSE Sensex's 4% decrease. The stock increased over the previous high it reached on September 21, 2022, which was Rs797.

In an open market transaction on September 22, Pastel Ltd, a subsidiary of Singtel, sold a 1.58 % in Bharti Airtel for Rs7,261 crore. According to records, the stock was acquired by Bharti Telecom, the promoter of Bharti Airtel. Following the purchase, Bharti Telecom's ownership in Bharti Airtel rose to 44.59% from 43.01%.
The shareholding pattern data reveals that as of June 30, 2022, Bharti Telecom, Indian Continent Investment Limited, and the promoters of Bharti Airtel had a combined 41.89% ownership in the business.

Analysts predict that throughout the period of FY22–25E, the Indian telecom sector would see considerable growth due to industry consolidation and tightened ARPU guidelines. By the calendar year 2027 (CY27), the cost of 5G services in India is projected to be between Rs 580 and Rs 1,300 billion in the connectivity and business markets. Despite this, Prabhudas Lilladhar analysts have started "buy" coverage on Bharti Airtel with a target price of Rs1,032.

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