Bharti Airtel Acquires 20% Stake In Its DTH Business: Motilal Oswal Analysis 
A pedestrian looks up while walking past a Bharti Airtel Ltd. store in Mumbai, India (Photographer Dhiraj Singh/Bloomberg)

Bharti Airtel Acquires 20% Stake In Its DTH Business: Motilal Oswal Analysis 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Bharti Airtel Ltd. announced that it is buying back its 20% stake in its direct-to-home business from Warburg Pincus for approximately Rs 31.26 billion (which it sold for Rs 24.5 billion in FY18), offering ~ Rs 10 billion in cash and the balance through 36.5 million equity shares of Airtel at Rs 600/share (i.e. a dilution of 0.7%).

At 8.5%, this implies a moderate cost of capital. But with the risk of a digital disruption, the outlook for the DTH industry and valuations may have only weakened in the last three years in contrast of a cumulative 28% return for Warburg Pincus.

Click on the attachment to read the full report:

Motilal Oswal Airtel Company Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.