Airtel-Tata Teleservices deal unchains the bulls

Airtel-Tata Teleservices deal unchains the bulls 


 Shares of Bharti Airtel and Tata Teleservices (Maharashtra), the listed unit of Tata Teleservices, surged Friday, a day after India’s biggest telco announced its decision to take over the consumer mobile business of Tata Teleservices. Bharti Airtel rose 7.9% to close at Rs 431.60 on the BSE, while those of Tata Tele (Maharashtra) shot up nearly 10% to close at Rs 4.86. 

Brokerages have turned positive on Bharti Airtel and upgraded their stance from sell to buy as the acquisition of Tata Tele’s wireless business is expected to boost the Sunil Mittal-led telco’s overall cost position and spectrum portfolio and help defend its margins and cashflows against Reliance Jio, analysts said. 

The Tata Tele deal, coming on the heels of Airtel’s buyout of Telenor India and an earlier spectrum trading deal with Aircel, will allow India’s top phone company .