Telecom stocks are expected to continue with their bearish trajectory next week as
investors will continue to reduce exposure to the sector on debt concerns after companies
shelled out big bucks for acquiring spectrum in the auction concluded last week. Stocks
of telecom service providers Bharti Airtel, Idea Cellular and Reliance Communications
have declined 3-8% at the end of the current week's trade.
Companies in total had spent a total 611.62 bln rupees for acquiring spectrum, of which
they have to pay a combined upfront payment of 182.96 bln rupees by next week. The
sector already remains highly leveraged with existing debt estimated to be about 2.5 trln
rupees.
According to reports in Nigerian media this week, the Court of Appeal in Lagos had ruled
that Econet Wireless International remains a bona fide stakeholder in Airtel Nigeria, a
claim which Bharti Airtel has denied and challenged legally.
investors will continue to reduce exposure to the sector on debt concerns after companies
shelled out big bucks for acquiring spectrum in the auction concluded last week. Stocks
of telecom service providers Bharti Airtel, Idea Cellular and Reliance Communications
have declined 3-8% at the end of the current week's trade.
Companies in total had spent a total 611.62 bln rupees for acquiring spectrum, of which
they have to pay a combined upfront payment of 182.96 bln rupees by next week. The
sector already remains highly leveraged with existing debt estimated to be about 2.5 trln
rupees.
According to reports in Nigerian media this week, the Court of Appeal in Lagos had ruled
that Econet Wireless International remains a bona fide stakeholder in Airtel Nigeria, a
claim which Bharti Airtel has denied and challenged legally.
