Shares of Bharti Airtel were inching upwards on Wednesday after its unit entered a deal to takeover a sister company within the Bharti Group.
What Happened: Bharti Airtel Services, a subsidiary of Bharti Airtel, has finalised an agreement for the acquisition of a 97.1% stake in Beetel Teletech.
The acquisition, valued at ₹669 crore, aligns with Bharti Airtel’s strategy to bolster indigenization initiatives within its telecom product ecosystem, in accordance with the “Make in India” policy. The move also aims to enhance distribution and service capabilities, particularly for the enterprise business segment.
As part of the group restructuring, Bharti Airtel Services Limited has agreed to acquire 49.4 lakh equity shares, representing a 97.1% stake in Beetel.
Why It Matters: Beetel Teletech is also a joint venture partner with a 49% stake in manufacturing facilities that produce telecom and networking products, including those eligible for the production-linked incentive scheme. Beetel will become a subsidiary of Bharti Airtel.
Established in 1999, Beetel Teletech, leveraging its in-house technical capabilities and global original equipment manufacturer relationships, is actively involved in designing and delivering technical solutions and services. The company distributes a diverse range of products, from IT peripherals and network solutions to fixed landlines and mobile accessories.
Price Action: Bharti Airtel’s share price was up 0.26% at ₹1,024.40 near the start of trade on Wednesday.
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