www.rupeedesk.in
Telecom stocks are expected to trade in a range as investors will now await to see if the payout for the spectrum acquired in the auction concluded on Thursday will put strain on the balance sheets of companies. Telecom companies had shelled out 611.62 bln rupees in the spectrum auction, out of which upfront payment of 182.96 bln rupees will be made in the current financial year. The bidding was aggressive and ended slightly above our estimates. It will raise the net debt levels of an already highly leveraged industry. Total debt in the industry is estimated at about 2.5 trln rupees. Bharti Airtel in statement said that it had acquired spectrum at 185.30 bln rupees and will make an upfront payment of 54.25 bln rupees. According to Notice Inviting Application, telecom companies will have to make an upfront payment of 33% for 1,800 MHz spectrum and 25% for 900 MHz spectrum. Idea Cellular is estimated to shell out 109 bln rupees for spectrum acquired with the upfront payment to be made at 33 bln rupees. Both Bharti Airtel and Idea Cellular are expected to trade in a narrow range next week.
Telecom stocks are expected to trade in a range as investors will now await to see if the payout for the spectrum acquired in the auction concluded on Thursday will put strain on the balance sheets of companies. Telecom companies had shelled out 611.62 bln rupees in the spectrum auction, out of which upfront payment of 182.96 bln rupees will be made in the current financial year. The bidding was aggressive and ended slightly above our estimates. It will raise the net debt levels of an already highly leveraged industry. Total debt in the industry is estimated at about 2.5 trln rupees. Bharti Airtel in statement said that it had acquired spectrum at 185.30 bln rupees and will make an upfront payment of 54.25 bln rupees. According to Notice Inviting Application, telecom companies will have to make an upfront payment of 33% for 1,800 MHz spectrum and 25% for 900 MHz spectrum. Idea Cellular is estimated to shell out 109 bln rupees for spectrum acquired with the upfront payment to be made at 33 bln rupees. Both Bharti Airtel and Idea Cellular are expected to trade in a narrow range next week.
