According to a filing, Bharti Airtel Services, a wholly-owned subsidiary of Bharti Airtel, has reached an agreement to purchase 49.45 lakh shares, or 97.1% of Beetel Teletech, another Bharti Group firm. The acquisition, which is estimated to have cost Rs 669 crore, is part of the company’s plan to support indigenization efforts within its own telecom product ecosystem in accordance with the government’s ‘Made in India’ policy and to expand distribution and service capabilities (including system integration) primarily for the enterprise business.
‘…as a part of group restructuring, Bharti Airtel Services Limited, a wholly-owned subsidiary company of Bharti Airtel Limited has entered into an agreement for acquisition of 49,45,239 equity shares representing 97.1 per cent stake in another Bharti Group company, Beetel Teletech Limited, which also has 49 per cent stake in Joint Venture having two manufacturing facilities which produce telecom and networking products including those qualifying for Production Linked Incentive (PLI) Scheme,’ according to the filing. This is a cash deal.
As a result, Beetel will join the corporation as a subsidiary.
According to the rules of the SEBI listing regulations, the acquisition constitutes a related party transaction. A 97.1% ownership in Beetel is owned by Bharti Group entities, specifically Bharti Enterprises (Holding) Private Limited, Bharti (RM) Holdings Private Limited, Bharti (RBM) Holdings Private Limited, and Bharti (LM) Enterprises Private Limited.
On March 30, 1999, Beetel Teletech was incorporated.
Based on the strength of its internal technical capabilities, connections with international OEMs, and channel, which consists of numerous distributors, retailers, and partners, it is involved in the design and delivery of technical solutions and services as well as the distribution of a broad range of products, ranging from mobile accessories and fixed landlines to IT peripherals, network, and enterprise solutions.
Leading brands such as Avaya, HP/Poly, Samsung, Siemens, QSC, RADWIN, Ruckus, RAD, ADVA, and Actelis are distributed by Beetel.
According to the BSE filing, Beetel also owns a 49% interest in a joint venture that has two facilities for the manufacturing of landlines, telecom, and networking products, including those made in accordance with the Ministry of Communications’ ‘Production Linked Incentive (PLI) Scheme to Promote Telecom and Networking Products Manufacturing in India.’
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