Bharti Airtel’s annual report reveals that while its tower business valuation has declined 20%, it has upped its stake substantially in its DTH or direct-to-home business, reports CNBC-TV18′s Priyal Guliani.

Bharti Infratel valuation is down 20% in six months. This is per Bharti Airtel’s annual report. Valuation per tower is higher than the market at Rs 62 lakh per tower.

Analysts say the scale of operation justifies a premium for Bharti Infratel. The valuation drop is inline with the industry valuation.

The fall in valuation came to light when the company converted its debentures in March. In October 2009, its convertible debentures were converted at Rs 1,004.58 per share. But in March, the debentures got converted at Rs 788.56 per share.

Bharti holds 86% in Bharti Infratel. The proportionate value for the same is Rs 39,600 crore.

Hikes stake in DTH:
Bharti has hiked its stake from 40% to 95% in Bharti Telemedia, which handles the DTH business.

Press Note 2009 had excluded indirect foreign holding from FDI limit. Bharti Airtel has bought back stake from Bharti Enterprises at Rs 7.4 crore. It has also trimmed its holding in Telemedia to comply with the FDI limit.

Source: MoneyControl.com