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Tuesday, November 29, 2016

Idea rallied 5% on Plan to sell Entire Stake in Tower Arm


IdeaIdea Cellular shares rallied 5 per cent intraday on Tuesday after sources close to the telecom operator informed that the company is likely to 100 per cent stake in its tower subsidiary.The Aditya Birla Group Company has skipped its earlier plans to sell a minority stake in the business and currently it is eyeing to sell 11,000 telecom towers for close to USD 1 billion. Idea Cellular has reached out to America Tower Corp, Bharti Infratel and Brookfield for tower sale, adding that it is likely to maintain its stake in Indus Towers.
Indus Towers is a joint venture between entities of Bharti Infratel, Vodafone India and Aditya Birla Telecom. Usually when important telecom sector turns competitive, companies are likely to sell-off tower assets and use the proceeds to pump up telecom operations, repay debt or fund expansion and network rollout.
As of now, Idea share price is trading at Rs. 79.10 (up by 4.35 per cent).The stock touched the day’s high and low at Rs. 79.70 and Rs. 77.50, respectively.
Idea disappointed analysts on Monday with consolidated profit falling sharply by 58.5 percent sequentially to Rs 91.4 crore in July-September quarter. Revenue during the quarter declined 2 percent to Rs 9,300 crore compared with Rs 9,486.6 crore in previous quarter, partially led by voice minutes decline and rest due to rate fall in mobile voice & data segment on hyper competition. The telecom operator said standalone profit in Q2 plunged 91.3 percent to Rs 4.3 crore and cash profit slipped 23 percent to Rs 1,940.7 crore on sequential basis.
Idea is analyzed by Dynamic Levels as the top 500 performing stocks for this quarter among the 1700 stocks which are listed on the NSE. In order to know about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a visit to Idea share price history.

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