According to Motilal Oswal Financial Services, Bharti Airtel and Idea could see this as a welcome positive as it could result in an increase in EBITDA (earnings before interest, taxes, depreciation, and amortization) by Rs 2,760 crore (offering 10 per cent/65 per cent upside at EBITDA level).
"Further, if the Trai does not abolish the termination charge, Bharti/Idea could benefit additional Rs 1,000/1,520 crore on EBITDA, implying overall gain of Rs 3,760/4,280 crore (+14 per cent/100 per cent)," it added.
The brokerage firm remains positive on Bharti due to its potential free cash flow or FCF break-even position in FY20. The move, it says, could also offer big sentimental positive as it indicates positive trends and re-rate in the telecom stocks given the credence toward the high growth expectation in FY21 and further.
Meanwhile, Bharti Airtel on Wednesday said it has raised $ 750 million (about Rs 5,330 crore) from investors based in Asia, Europe and the US through a hybrid financial instrument.
The stock of Reliance Industries was up 3 per cent to Rs 1,366, extending its previous day gain of 1 per cent on the BSE. Shares of Vodafone Idea were trading flat at Rs 5.88, after rallying 18 per cent to Rs 6.87 on the BSE in intra-day trade today. It has surged 16 per cent in the past two trading sessions.