Bharti Airtel Jumps 7 Percent As Co To Undergo Ownership Structure Change
Bharti Airtel’s share price jumped over 8 percent on March 11 after promoter entity Bharti Telecom said it will renounce post-rights stake in favor of GIC, bringing down total promoter holding in Bharti Airtel by 4 percent to 63 percent.
Among promoters, Singtel has notified that effective stake in Bharti Airtel will fall from 39.5 percent to 35.2 percent.
However, the Mittal family’s total stakeholding in the company will remain the same at 27 percent, even though its direct holding through Bharti Telecom will come down. The Mittal Family will increase its direct stake in Airtel by 4.4 percent via Indian Continent Investment.
Given Bharti Airtel’s commendable market-share defence, imminent turn in revenues and fortified balance sheet, CLSA has retained its buy rating on the stock with a target price of Rs 410.
In our view, the capital raising will assuage any concerns around Bharti Airtel’s leverage, CLSA said in a note.
Bharti Airtel closed at Rs 333.70, up Rs 24.95, or 8.08 percent. It has touched an intraday high of Rs 336.60 and an intraday low of Rs 308.—Money Control
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