Bharti Airtel shares decline after acquiring 97 MHz spectrum worth ₹6,857 crore in auction

Shares of telecom major Bharti Airtel fell on Thursday, June 27, after the company acquired 97 megahertz (MHz) spectrum for a total consideration of ₹6,857 crore.

The stock declined 0.3% to ₹1,454.7 on the National Stock Exchange (NSE) in the morning trade. It slided 0.3% to 1,453.2 on the BSE.

In the spectrum auction conducted by the government, Airtel acquired 97 MHz spectrum by winning back spectrum that was expiring this year and additionally purchased spectrum to strengthen its mid‐band spectrum holding across select circle, the company said in a regulatory filing.

Out of the quantum of spectrum, Bharti Hexacom acquired 15 MHz with an outlay of ₹1,001 crore.

Airtel said the spectrum purchase will help the company build a large pool of mid-band holdings to provide seamless 4G and 5G services across the country.

Gopal Vittal, Managing Director and Chief Executive Officer of Bharti Airtel, said, "Airtel continues to judiciously acquire the right amount of spectrum to deliver the best possible experience to our customers. In this auction, we have bolstered our sub‐giga hertz and mid‐band holding, which will significantly improve our indoor coverage".

Besides Airtel, Reliance Jio and Vodafone Idea purchased spectrum. Reliance Jio acquired 14.4 MHz spectrum for ₹973 crore, while VI acquired 30 MHz for a total consideration of ₹3,510 crore.

A total of 10 gigahertz (GHz) in airwaves worth ₹96,238.45 crore were up for sale.