Bharti Airtel Share Price Update

Market Performance

On March 12, Bharti Airtel's stock was trading at ₹1,689.95 at 9:20 AM. Despite prevailing weak market sentiments, the stock experienced a 2% rise during the trading session. Over the past period, the stock has recorded a gain of over 5% on the NSE.

However, the stock lost its initial gains following reports that Reliance Industries' telecom arm, Jio, had also entered into an agreement with SpaceX to provide high-speed internet services in India.

Agreement with SpaceX

Bharti Airtel has announced a partnership with SpaceX to facilitate the distribution of Starlink's high-speed internet services in India. The collaboration is set to explore multiple business opportunities, including the availability of Starlink equipment in Airtel's retail outlets, offering Starlink services to enterprise clients, and enhancing connectivity in rural regions.

Despite this development, the agreement does not indicate exclusivity, as Airtel remains a major stakeholder in Eutelsat OneWeb, a competing satellite broadband service provider. OneWeb has already secured the necessary approvals to operate in India, which is pending spectrum allocation.

At present, the deal's immediate impact remains limited since Starlink has yet to obtain its operating license in India.

Internal Shareholding Reorganization

Bharti Airtel has transferred a 69.94% stake in Airtel Payments Bank to its wholly owned subsidiary, Airtel Limited. This step is part of an internal shareholding restructuring and does not alter the bank's ownership structure.

According to the regulatory filing, the share transfer process was completed after securing the required corporate and regulatory approvals. The transaction, categorized as a related party transaction, will be executed at arm's length.

Summary

Bharti Airtel's share price moved upward following its partnership announcement with SpaceX but later retraced due to competition-related developments. The company aims to leverage the Starlink agreement to expand its service portfolio while maintaining its presence in satellite broadband through OneWeb. Additionally, the internal restructuring of Airtel Payments Bank aligns with the company's strategic organizational adjustments.