Bharti Airtel - MSCI Rejig led to 12 crore shares in delivery

By Research Desk
about 2 months ago

Bharti Airtel saw delivery volume of 11.95 crore shares on Friday, at an average rate of Rs. 560, with value of Rs. 6,700 crore. MSCI rejig being effective from today saw FIIs bought this quantity. Those who warehoused it earlier, may have sold entire quantity to FIIs, while few other FIIs may seen having sold it as well, who are not benchmarking their PF to MSCI.

Bharti has total issued equity of 546 crore shares, of which, 97.43% is held by the promoters (56.23%) and by the Inst investors (41.20%), thus having low float of just 2.57%, being 14 crore share as retail float. This delivery of 12 crore shares may have sucked float of about 4 crore share, which will be known from shareholding pattern as at 31-3-21, to get loaded by 20th April, 2021.

Other positive news flows for Bharti Airtel seen ahead are-
1)    Hon'ble Supeme Court on 24th February, 2021, agreed to hear AGR Dues recalculation plea of Bharti in 2 weeks. DoT calaulated AGR Dues at Rs.43,980 crore, while Bharti claims it at Rs, 13,004 crore. Any relief on this count will make Bharti less leveraged to that extent.
2)    Bharti became first Telecom player to successfully demonstrate live 5G service over a commercial network in Hyderabad, about a month back. Bharti said that it operated 5G and 4G concurrently over the existing liberalised spectrum in the 1800MHz band, through the Non-Standalone (NSA) network technology. Airtel 5G is touted to deliver 10 times the speed of existing network technologies.
3)    4G Spectrum auction by Govt, for Rs. 3.92 akh crore, is expected in the next couple of weeks, for which, Bharti may only bid for 1,800 MHz spectrum, which is cheaper one, as Bharti has ample spectrum with it, having acquired in M&A, as also, in earlier auction rounds.
4)    Bharti is seen garnering higher telecom subscriber in the last 5 months, during August to December, 2020 over Jio, while same trend is seen continuing for the next 3-4 months as well.
5)    Q3 FY2021 finacials seen to be strong, may get surpassed by Q4 FY21 numbers.

Hence, all these positives will surely get reflected in share price.
This is not a Buy recommendation and stock recommendations are provided exclusively to our paid members in the Member Zone.

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