"The enterprise valuation has been agreed to be in the range of $10-12.5 billion and the final valuation will be determined on the basis of Bharti Infratel's actual operating performance in 2008-09," a Bharti statement said.
KKR has committed to investing around Rs 1,000 crore in Bharti Infratel, through KKR's Asia private equity fund and global private equity fund.
The company has set a price band of Rs 210 to Rs 240 per share
It is introducing a new business model to manage fixed line and DSL broadband networks.
Investors including units of Morgan Stanley and Citigroup have agreed to buy 28.3 million shares of Bharti Infratel at Rs 230 apiece.
The company is also in discussions with state-run telecom major BSNL for sharing passive infrastructure across the country, Bharti Airtel's President Manoj Kohli told reporters after announcing the second quarter results. The company intends to have a minority stake in its tower company after the demerger.
The company received a fresh equity infusion in 2012-13.
British telecom giant Vodafone is in discussions to sell its about 5 per cent stake in telecom infrastructure company Indus Towers to Bharti Airtel, according to industry sources. The deal, if it goes through, could be worth over Rs 3,300 crore, they said. When contacted, Vodafone refused to comment on the matter. An e-mail sent to Bharti Airtel did not elicit any response.
Within a year of Gopal Vittal becoming the joint MD and CEO of Bharti Airtel's India operations, the company has elevated him as the MD and CEO for Bharti Airtel's operations in India and South Asia.
It is believed that apart from Bharti Airtel and Bharti Infratel, there are four players that have made a bid.
Bharti's ratings headroom is likely to improve with an equity infusion, planned asset sales and growing EBITDA from Africa.
The company has similar pact with Bharti Infratel.
The telecom tower-transmission business is going to see a shake-up with cash-rich and independent companies moving in with aggressive plans.
Reliance is looking at a cost of Rs 1 lakh per base station, which would be used to transmit telecom signals. Compare this with the existing players who have set up towers incurring a cost anywhere between Rs 5 lakh and Rs 50 lakh, depending on the height and location.
Officials of Reliance Jio Infocomm claimed to have achieved broadband speeds on their networks that are 10-12 times faster than 3G services.
Telecom operator Bharti Airtel on Friday said it has signed an agreement to buy Vodafone's 4.7 per cent stake in Indus Towers on the condition that the proceeds will be used for investment in Vodafone Idea and clearing its dues towards the mobile tower company. Debt-ridden Vodafone Idea (VIL) has been unable to pay dues to Indus Towers and both VIL and promoter Vodafone have proposed a payment plan to clear the outstanding amount by July 15. In the meantime, VIL has committed to pay certain minimum amount each month to Indus Towers.
The Jio-Bharti battle will not just be limited to mobile telephony but will extend to the fibre to home space too.
VIL, in which Vodafone holds 45.39 per cent stake, is staring at unpaid statutory dues of Rs 53,038 crore, including Rs 24,729 crore of spectrum dues and Rs 28,309 crore in licence fee, and has already warned of shutdown if no relief is given.
Institutional investors led by foreign portfolio investors have bought these shares.
The three companies for sale are Reliance Communications, Reliance Telecom and Reliance Infratel.
Despite low tariffs, voice usage is not growing.
Banking and telecom will see the highest impact of this transition.
The DoT estimates that it will receive Rs 29,524 cr in revenue from the telecom industry in FY18, which is 38% less than the Budget revenue target of Rs 47,300 cr for FY18
American Tower bulks up in India with $1.2 billion Viom stake buy
The progress of the GST Bill in Parliament is also likely to remain in focus
The combined market capitalisation of the top 873 family-owned companies was down 26.3 per cent year-on-year (YoY) to Rs 61.8 trillion at the end of trading on Tuesday. It had grown 6 per cent in FY19 and nearly 20 per cent in FY18.
ONGC was the top performer while private banking major ICICI Bank extended gains
The big advantage that Jio is able to garner currently is its low cost of operations.
Telecom tower companies likely to invest around Rs 500 crore (Rs 50 billion) to enhance network.
Sensex remained volatile through the day.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Short-covering and the propping up of net asset values have potential to boost frontline as well as second-rung names next week
Cut-throat competition, high spectrum costs, and frequent flip-flops in government policies have made it difficult for Vodafone to make money in the country.
'The mismatch between valuations and fundamentals is startling,' warns Devangshu Datta
Investors turned cautious ahead of the US Fed meet outcome later today and July F&O expiry.
Investor sentiment got a boost following remarks from the Russian President Putin that allayed fears of an imminent military conflict in Ukraine
But the road map of telecom will be decided by one thing: Whether Jio sticks to its ambitious plan and whether incumbents have enough financial muscle or ability to raise money every year to ensure that Jio does not reach its target, says Surajeet Das Gupta.
Globally, the focus has moved back to India, especially in terms of telecom assets. Vodafone Idea, with some 300 million customers, continues to be attractive with shares available at a low price.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries
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