Foreign institutional investors (FIIs) stake in Bharti Airtel, the country's largest telecommunication company by revenue and customers, has touched to seven year low on concerns of poor operational performance and regulatory issues.
FIIs held 16.44% stake in the company at the end of September 2012 quarter, which was the lowest since March 2005, the shareholding pattern data disclosed by the company shows.
The overseas investors have cut their stake in telecom giant by more than one per centage point in past six months from 17.52% at the beginning of the year.FIIs held 24.39% stake at the end of March 2005 quarter.
The scrip is the major underperformers among the Sensex companies, it has fallen 23.3% as compared to 21.3% surge in benchmark index so far in the current calendar year 2012.
Today, the stock has dipped almost 3% to Rs 263 in intra-day trades after the telecom commission recommended mobile phone carriers give up all their airwave holdings in the more-efficient 900 mega hertz band during the renewal period for their permits.
“Poor operating performance coupled with negative regulatory noises (2G roaming abolition, 3G roaming ban, one time spectrum fee levy, reduction in processing fee on recharge vouchers) makes us cautious in the near term on telecom,” analyst at HDFC Securities said in the September quarter results preview.