• Bharti added net 14mn data subscribers during the quarter which was the second highest in its history. Also, it saw the highest ever quarterly 4G data subscribers net adds of 20.7mn.
• Higher 4G subs net adds vs data net adds reflected strong trend of subscriber up-gradation from non-4G to 4G which should bode well for ARPU, in our view.
• Approves launch of US$3bn of capital raise. Bharti Airtel also announced launch of previously disclosed US$2bn equity raise via QIP at not more than 5% discount to SEBI determined floor price of Rs452/share. It also announced raising an additional US$1bn via foreign currency convertible bonds.
• Over last few months sector has witnessed several positive events - mobile price hikes, deferment of spectrum payment, delay in elimination of IUC fees and TRAI launching consultation paper of mobile floor pricing.
• Currently, key issue concerning the sector is AGR liabilities wherein we highlight that telcos have filed a limited review petition with the SC. As per various media reports (Economic Times), we expect more clarity on timelines of review petition overt next few days. We have a constructive view on the sector with Bharti Airtel as our preferred pick as we believe it remains well positioned to capitalize on pricing recovery.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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