DTH operators rally over 7% on Warburg move

DTH operators rally over 7% on Warburg move

Shares of direct-to-home operators today rallied over 7% after private equity firm Warburg Pincus announced plans to acquire stake in Bharti Airtel's DTH arm.

Bharti Airtel on Tuesday said an affiliate of private equity firm Warburg Pincus will acquire up to a 20% stake in its DTH arm Bharti Telemedia for about $350 million (around Rs 2,310 crore).

Following the announcement, Bharti Airtel opened on a bullish note and soared to a high of Rs 533.50, registering a jump of 2% over its previous close on the BSE.

Shares of other DTH operators were also trading in positive territory. Hathway Cable jumped 7.5% to touch a high of Rs 43 on the BSE while Dish TV India jumped 3.93%, Den Networks 3.61% and Sun TV Networks 3.24% on the BSE on Tuesday.

Market experts said the Warburg Pincus' 20% stake buy in Bharti Telemedia news had a ripple effect on other DTH stocks and accordingly, they were trading in the green.

Out of the 20%, Bharti Airtel will sell its 15% stake in direct-to-home arm and the balance will be sold by another Bharti entity.

Upon closure of the transaction, Airtel will own 80% stake in Bharti Telemedia.

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