Analysts at ICICI Securities noted that Vodafone Idea
(VIL) has agreed to make a pre-payment of Rs 2,400 crore to the merged tower entity from the cash consideration to be received from Infratel at the time of closing. "Apart from double taxation benefits on dividend pass through, there would not be major benefit for Bharti Infratel
as a combined entity. The promoters Airtel & Vodafone (UK) Group, however, in our view, would look to pare their stake to PE players later," they said in a report.
Given the weak financial health of telcos, analysts at Emkay Global Financial Services anticipate receivables to stay at elevated levels. However, the pre-payment of Rs 2,400 crore by VIL (including monthly payments and receivables), as per the merger terms, provides comfort, the brokerage firm said in September results update.
At 10:25 am, Bharti Infratel was trading 6 per cent higher at Rs 197 on the BSE as compared to a 0.33 per cent-rise in the S&P BSE Sensex. A combined 9.8 million equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report.