I read somewhere that both companies have their own tower business and thus Indus does not have much leverage over them in terms of pricing power
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Bharti group owns approx. 1/4th of Indus Towers equity. Its in their best interests to use the services of Indus Towers than moving to other providers. Jio is a different beast with its own towers, operated by Brookfield.
Discl: Indus Towers is 15% of my PF
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Airtel owns almost 50% of indus tower and vodafone idea owns about 20% which i believe most of it is pledged to indus tower and other creditors.This to me is lifetime opportunity because indus tower has to survive for airtel to survive as not only it is his the biggest cash cows in the form of dividends plus it will also lose it’s competitive edge over rival jio if something happens to Indus tower.Historlly speaking at current valuation if voda idea survives or someone picks it up for throwaway price like ruchi soya,Then you will own a asset which not only gives you a dividend yield of 10% plus but also also own something which is the backbone of digital india.After jio the consumption and users of internet has only increased and it’s only going to increase with rising young people in India and our country moving to digital payments and online shopping away from the old brick and mortal model.
Vodafone-idea or not ,Airtel will not let get Indus tower go off ,As it will be at the mercy of canada brokfeild which owns and provide services to jio towers.Worst case scenario Airtel will sell indus towers to some company like Canada brookfeild at similar valution they purchased 130000 jio towers for 25000 cr,whereas indus has 185000 towers. Which gives it a valution of 36000cr minus debt plus investment gives it a valution of almost around around 30000 cr(current market cap 36000 cr).
Disc:I have started averaging down another reason being airtel was the first one to pick up a huge 4% stake in the tower company from vodafone idea and that to at 186 rs a share.this right now trades at almost 26% discount to that and i don’t know what the bottom might be but i do know when all thing scool down this will not trade at 136 rs a share.(This is my persnal opinion as i own the stock so please do your own research)
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Only today it reached close to 50%
And it looks like your thesis is likely true that they want to scale up fast and also not let Jio buy out the shares and take majority stake and then shoot them in the head over slow rollout of 5G. You can’t do installs if the other guy holds the physical assets.
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Nettle Infra was a wholly owned subsidiary of Bharti airtel. So no change in real ownership structure.
Bharti airtel has merged couple of WOS with itself. This is part of that transaction
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was anyone able to find out how much Bharti Airtel paid for 23.01% stake?
They haven’t bought this stake; they already owned this via Nettle. Nettle was a wholly owned subsidiary of airtel. They have now merged couple of subsidiaries (incl Nettle) with itself hence the shares are now transferred to Airtel.
2AEAA5DE_9AC2_44F5_8920_714BC61FB9AB_103314 (1).pdf (210.2 KB)
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A much needed relief rally, however VI’s woes are far from over. They are losing subscribers every month and are severely lagging behind Airtel and Jio. BSNL will soon launch 4G, and level the playing field with VI.
Anyone knows how what % of revenue comes from VI , Airtel and JIO for Indus tower ?
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our understanding is that airtel group contributes about 45%, voda 35%, and jio about 18%.
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Can we expect the players to consolidate?
I hope indus towers could buy ATC assets.
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Reliance will look to materialize this opportunity since it makes the company independent in terms of telecom infrastructure
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The Results are out guys!!! Would love to get your views.
My view : Neutral (No Positive Surprises)
https://www.bseindia.com/xml-data/corpfiling/AttachLive/27edec23-0f62-42d5-a0a0-a586d2d7f2ca.pdf
I’m quite suprised that there are no provisions created for vodafone this quarter .Has vodafone idea started paying it’s dues this quarter?
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