Shares of Bharti Hexacom Ltd. will be in the spotlight on Friday, April 11, after the company announced it has temporarily paused its plan to sell 3,400 telecom towers to Indus Towers for ₹1,134 crore.
The move comes after an intervention by Telecommunications Consultants India Limited (TCIL) — a Government of India entity that holds a 15% stake in Bharti Hexacom. Following TCIL’s involvement, Bharti Hexacom stated in a stock exchange filing that the proposal has been put “in abeyance” and a fresh evaluation will be carried out in consultation with TCIL.
This transaction was originally part of a larger deal announced in February, under which Indus Towers was to acquire a total of 16,100 towers from Bharti Airtel and Bharti Hexacom for ₹3,308.7 crore in cash. The deal was expected to close by March 31. As of now, Indus Towers has completed the acquisition of Airtel’s passive infrastructure business, which involved 12,700 towers. The remaining 3,400 towers from Bharti Hexacom are pending.
Indus Towers had previously said the acquisition was aligned with its core business and would enhance its market share while supporting long-term growth. On the investment front, brokerage firm Motilal Oswal has reiterated its bullish stance on Bharti Hexacom. In a recent note, it stated that it prefers Bharti Hexacom shares over its parent company Bharti Airtel Ltd., citing lower risks of capital misallocation.
Motilal Oswal has given Bharti Hexacom a ‘Buy’ rating with a target price of ₹1,625 — a level that would surpass the stock’s post-listing high of ₹1,609. The brokerage noted that Bharti Hexacom is currently trading at a 15% premium to the implied valuation of Bharti Airtel’s India business, a premium it believes could be sustained.
