Results for: telecom sector

Jyotiraditya Scindia has assumed the post of Communications Minister in the new Narendra Modi-led government, expressing his deep connection to the ministry where he previously served as Minister of State for Telecommunications, Posts, and Information Technology from 2007 to 2009. Scindia plans to leverage his experience to improve the performance of the telecom and India Post divisions. The minister has identified key priorities, including overseeing upcoming spectrum auctions, notifying rules under the new telecom law, and the commercial launch of BSNL’s 4G and 5G services. These initiatives aim to enhance the financial health of the telecom sector and create a level playing field for all service providers.

Nuvama Institutional Equities has turned positive on the telecom sector, predicting that a combination of tariff hikes and government support will boost operators’ financials and returns profiles. The brokerage believes Bharti Airtel is the best way to play this trend and has raised its target price. Nuvama has also upgraded Vodafone Idea’s rating to ‘Hold’ and raised its target price, but sees the company’s journey to becoming an investible idea as still some distance away.

Vodafone Idea’s (VIL) follow-on public offer (FPO) of Rs 18,000 crore, the largest in India’s history, was oversubscribed 6.36 times on its concluding day of bidding, April 22, amidst volatile market conditions. The strong investor response saw bids for 8,012.29 crore equity shares against the 1,260 crore shares offered in the FPO. Retail investors showed limited interest, subscribing to 576 crore shares against their allotted quota of 630 crore shares. However, qualified institutional buyers (QIBs), which comprised foreign institutional investors (FIIs), domestic financial institutions, and insurance companies, drove the oversubscription, bidding for 6,321 crore equity shares against the 360 crore on offer, an oversubscription of 17.56 times. Non-institutional investors (NIIs) also participated actively, subscribing to 4.13 times of their allotted quota. The FPO was open for public subscription from April 18 to April 22, with a price band set at Rs 10-11 per share. On Monday, Vodafone shares closed at Rs 12.89 apiece, down 0.23 percent.