Bharti Infratel Ltd - Issue highlights - ENAM

- Bharti Infratel Ltd. (BIL) is one of the largest tower infrastructure providers in India, based on combined towers owned by BIL and Indus (BIL has 42% equity interest in Indus). Co. has a combined economic interest in the equivalent of 80,656 towers with a nationwide presence in all 22 telecom circles in India as of Sept 2012.

- Category B & C circles have very low teledensity than category A & metro circles. The expansion of services in these relatively underpenetrated markets by telcos provides a significant opportunity to BIL.

- BIL and Indus have long-term master service agreements (MSAs) with the tenant telcos which generates stable cash flow in the form of tower rentals as well as provides revenue visibility for the company.

- Higher penetration of 3G & 4G services will result in higher data usage going forward which requires additional network capacity & is expected to drive tenancy growth.

- Marquee investors will continue to hold major shares in BIL even post IPO; the likes of Compassvale (wholly owned subsidiary of Temasek), KKR Towers, Nomura, Citigroup Financials, GS Strategic, AXA Towers India, Millenium Mauritius Ltd., amongst others.

- CRISIL Ltd has assigned "IPO Grade 4/5" which indicates above average fundamentals.

- BIL has reported stellar income & profitability growth with revenue growth @ CAGR of 91.3%, EBITDA growth @ 94.2% whereas PAT growth @ 108% CAGR between FY 2008 - FY 2012.

Source : Equity Bulls

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