Friday, June 17, 2016

Bharti Infratel hits 52-week low

Business standard has reported by Bharti Infratel hits 52-week low Bharti Infatel has hit a 52-week low of Rs 334, down 4% on the BSE, extending its past two day's 8.4% fall, after the stock turned ex-date for buyback of shares on June 15. The company has fixed June 16 (Thursday) as the record date for the buy-back, wherein it will buy shares worth Rs 2,000 crore on a proportionate basis from shareholders including promoters through the tender offer route.

The committee has determined the final buy-back price of Rs 425. Earlier, the board of directors of the company at its meeting held on April 26 had approved the share buyback proposal at a maximum price of Rs 450 per equity share.

According to Business Standard reports, the brokerages have cut earnings estimates and downgraded the stock recently. CLICK HERE TO READ FULL REPORT.

Meanwhile, the rating firm ICRA said the major cause for concern for the companies (telcos) is the downward trend of data realisations, which have been declining unilaterally for the last 12 quarters on account of increase in free/discounted offerings by the telcos to increase the data usage as well as increasing competitive pressures.

“In the medium term, the realisations are expected to continue to remain under pressure given the level of competition and the entry of Reliance Jio Infocomm Limited (RJio). However despite falling realizations, the increase in data usage has pushed the data ARPU which has grown from 121 for Q3 FY2015 to Rs 146 for Q3 FY2016 for the ICRA Sample,” the rating firm said in recent report on telecom sector.

At 11:10 AM, the stock was down 2.3% at Rs 340 on the BSE as compared to 0.5% rise in the benchmark index. A combined 2.65 million shares changed hands on the counter on the BSE and NSE so far.

No comments:

Post a Comment