Bharti infratel announces buy back

The season of buy back which started from this financial year (April 1) does not look like it is over yet.  Bharti Infratel the flagship company of Bharti Enterprise has announced a buyback of shares. The company will buy upto Rs 4.7 crores shares at the rate of Rs 425 per share. In an open market the shares are trading at Rs 378.60, as at 8.56 am June 14, which means the firm will pay Rs 46.4 as premium. 

In May 2016, almost 7 companies went for a buy back out of which the two were the Government owned enterprises namely NMDC and MOIL.

This trend of buying back the shares instead of declaring dividend is due to the latest tax policies adopted in the Union Budget by the Government of India. The Government has announced 10 per cent tax on the final dividend declared to the investor who receives dividend income greater than Rs 10 lakh in a financial year, which is in addition to the 20 per cent tax on dividend distribution already levied by the Centre.

Bharti Infratel owns 33,446 towers across 11 circles. It plans to spend Rs 1,086 crores to set up 4,813 new towers. Bharti Infratel also has a 42 per cent stake in Indus towers. It’s a wing of Bharti Enterprises, which is an Indian conglomerate headquartered in New Delhi. It operates in 20 countries across Asia and Africa. Bharti Enterprises owns businesses spanning across telecommunications, retail, financial services and manufacturing.

The shares of the Company on Tuesday, have opened in the positive and are trading at Rs 381.75 which is up by 0.83 per cent.