Shares of direct-to-home operators which rallied in morning trade today settled on a mixed note on the bourses as investors took to profit booking.
During the day shares of Hathway Cable, Bharti Airtel, Dish TV India, Den Networks and Sun TV Networks rallied after private equity firm Warburg Pincus announced plans to acquire stake in Bharti Airtel's DTH arm.
"This transaction is not about value-unlocking in our view, but would help Bharti marginally reduce its balance sheet leverage, while indicating a possible IPO of DTH business in the future," JM Financial Research said in a note.
Bharti Airtel yesterday said an affiliate of private equity firm Warburg Pincus will acquire up to a 20 per cent stake in its DTH arm Bharti Telemedia for about USD 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 per cent on BSE. The stock, however, pared gains and ended the day at Rs 516.95, down 1.34 per cent.
Hathway Cable jumped 7.5 per cent to touch a high of Rs 43 on BSE and finally settled at Rs 41.50, up 3.75 per cent.
Dish TV India closed 0.44 per cent down at Rs 79.85, Den Networks slipped 0.81 per cent to Rs 104.35 and Sun TV Networks rose by 2.71 per cent to Rs 914.40 on BSE today.
Out of the 20 per cent stake, Bharti Airtel will sell its 15 per cent 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 per cent stake in Bharti Telemedia.
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