Here’s Why Foreign Investors Are Favouring Bharti Infratel

Foreign portfolio investors increased their stake in Bharti Infratel Ltd. over the last five years from 6 percent to 43 percent, the most among its peers.

Multiple reasons have contributed to the trend. They include:

• Bharti Infratel’s merger with Indus Towers Ltd. is expected to be completed by June.
• Tenancy cancellation is over after a wave of consolidation among Indian mobile operators.
• The company’s profit for the December-ended quarter beat estimates.
• New agreement disclosures with mobile operators assure business continuity.

Shares of India’s second-largest tower operator have risen nearly 90 percent over the past five years, compared with a 22 percent decline in the BSE Telecom Index in the same period.