Shares of direct-to-home operators today rallied over 7 per cent after private equity firm Warburg Pincus announced plans to acquire stake in Bharti Airtel's DTH arm.
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 over its previous close on the BSE.
Shares of other DTH operators were also trading in positive territory. Hathway Cable jumped 7.5 per cent to touch a high of Rs 43 on the BSE while Dish TV India jumped 3.93 per cent, Den Networks 3.61 per cent and Sun TV Networks 3.24 per cent on the BSE today.
Market experts said the Warburg Pincus' 20 per cent 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 per cent, 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.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)