Bharti Infratel’s shares rally 24% in last three trading sessions, post merger with Indus Towers

Bharti Infratel’s shares rallied 24 percent in the last three trading sessions all thanks to the successful completion of the merger of Bharti Infratel and Indus Towers to create a mega tower. The share prices rallied by 5.11 percent on Tuesday at 11:20 AM IST. In early trade, Bharti Infratel’s stocks went up by 8% to Rs 238 in contrast to their opening price of Rs 219.95. The share prices hit a 52-week high of Rs 295.75 in December last year. The share holds a market cap of Rs 42,293 crore.

Bharti Infratel’s board on September 1 granted approval to their long-pending merger with Indus Towers which was first announced in April 2018 to create the world’s largest mobile tower operator outside China. Bharti Infratel stated in an exchange filing that the deal was completed on Thursday.

Vodafone Group will hold a stake of 28.12 percent stake in the merged entity, while the Airtel Group will hold a 36.7 percent stake. Bharti Infratel is one of the highest dividend-paying stock with a current dividend yield of 5.6 percent according to a report by ICICI Securities.

The report has further stated that high dividend yield stocks have performed better in a falling real interest rate environment. “High dividend yield stocks appear attractive as their yields are now comparable to other fixed-income instruments while having the added advantage of ‘inflation hedge’ characteristics of stocks as an asset class,” states ICICI Securities.

The shares held a price to earnings ratio of 14.75, while the price-to-book value ratio rested at 2.19. The company has a Return on equity (ROE) of 24.35 percent.