Bharti Infratel IPO to open on 11 December

Bharti Airtel Ltd has announced that the Red Herring Prospectus filed by Bharti Infratel Limited, a subsidiary of Bharti Airtel Limited, in relation to its initial public offer of 188,900,000 equity shares of a face value of Rs. 10 each (the "issue"), has been approved by the Registrar of Companies on November 29, 2012. The Issue will be opened for subscription on December 11, 2012. The price band has been fixed between Rs. 210 to Rs. 240 per share.   Bharti Infratel is selling 146.2 million new shares in the IPO, while four of its shareholders including arms of Singapore state investor Temasek and Goldman Sachs are selling 42.7 million shares, reports said. There are reports that Bank of America Merrill Lynch, J.P. Morgan, Standard Chartered, Deutsche Bank, HSBC, UBS, as well as India's Kotak Mahindra and Enam are advising Bharti Infratel on the IPO. SOURCE : http://www.indiainfoline.com

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Trading Strategy and Market Outlook

Indian Share Market falls down with some stocks like "Bharti Airtel" showing 4- year low. Almost every sector closed negative.

Why Bharti Airtel shares have hit a 4-year low?

Following are the answers for the same :-

Bharti Airtel fell as much as 3.44 per cent to its lowest intraday level since October 2008 today. 

1) Credit Suisse has become the latest brokerage to downgrade Bharti Airtel. 

2) On Tuesday, Morgan Stanley had downgraded Bharti Airtel to "equal-weight" from "overweight" and cut its target price by nearly 25 per cent to Rs 280. 

3) Pressure on profits : Intense competition has forced the carrier to pare some call prices and spend more on networks and marketing in an effort to hold market share, squeezing margins.

4) African business yet to turn around

5) High debt continues to adversely affect the company's performance

More Details - you can get from profit.ndtv.com

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