Bharti Airtel shares took a dip: Adani Group joining the telecom sector might be the reason
Shares of Bharti Airtel tumbled when the market opened on Monday. Adani group has registered themselves for the 5G auction along with a few other IT companies
Bharti Airtel’s share price opened downside on Monday and went on to hit an intraday low of ₹661.15 on NSE in early morning deals, logging a near 5 per cent dip from its Friday close of ₹695.15 apiece levels.
This has happened because of the news that Adani group is preparing to enter the telecom sector and has registered themselves for the 5G auction. Experts said that the Adani group hasn’t said that they will foray into the telecom space but after their entry into the 5G auction, it is for sure that even if they don’t foray into the telecom space, they are going to have their telecom infrastructure and they won’t take services of telecom companies once 5G is rolled out in India.
“We are participating in the 5G spectrum auction to provide private network solutions along with enhanced cyber security in the airport, ports & logistics, power generation, transmission, distribution, and various manufacturing operations,” an Adani Group spokesperson said.
The government is putting 72 GHz of 5G frequencies for auction, which could net up to ₹4.5 lakh crore at the base price. The airwaves will be sold for 20 years across 10 groups going from 600 Mhz to 26 GHz at costs suggested by the telecom regulator.
Four organisations – Airtel, Jio, Vodafone Idea and Adani Group – have placed applications to partake in India’s first auction of 5G airwaves beginning on July 26.
Prior, it was normal that the bidding will be muted, however, the entry of Adani in the auction has changed the circumstance. It might prompt higher contests and telcos might need to dish out extra to purchase the range now.
