India’s largest telecom operator (by subcriber base) Bharti Airtel has acquired Videocon Telecom for Rs 4,428 crore. Bharti Airtel will get rights to use 2X5 MHZ in 1800 band allocated to Videocon by the Government of India, Ministry of Communication & IT, Department of Telecommunication (DoT) on April 5, 2013. On Wednesday, Idea Cellular had terminated its spectrum deal with Videocon under which it was supposed to buy two circles – Gujarat and Uttar Pradesh (West) – for Rs 3,310 crore. Post the deal, Bharti’s 4G coverage will go upto 19 circles from the current 15. Nitin Soni of Fitch Ratings says that the investment will bring-in reasonable returns for Bharti. While the ratings remain unchanged, credit quality of Bharti is expected to improve over a period of time, he adds. With the company trying to expand its 4G reach, one might see another deal to acquire more assets, Soni adds. Naveen Kulkarni of PhilipCapital says that considering what Idea was paying for two circles, Bharti will be paying for all six circles. The deal certainly does not look bad. Kulkarni further says that Bharti, which already has spectrum, needs more in certain circles. “More spectrums always help,” he says. Videocon, as well, is making good money on the deal, Kulkjarni adds. At 11:17 hours IST, the scrip of Bharti Airtel was quoting at Rs 348.20, up Rs 8.55, or 2.52 percent while Videocon Industries rallied 14.7 percent to Rs 125.8 on the Bombay Stock Exchange. Bharti Airtel stock price On March 17, 2016, at 12:21 hrs Bharti Airtel was quoting at Rs 348.50, up Rs 8.85, or 2.61 percent. The 52-week high of the share was Rs 452.45 and the 52-week low was Rs 282.30. The company’s trailing 12-month (TTM) EPS was at Rs 24.40 per share as per the quarter ended December 2015. The stock’s price-to-earnings (P/E) ratio was 14.28. The latest book value of the company is Rs 195.80 per share. At current value, the price-to-book value of the company is 1.78.
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