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 

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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

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