According to ICICI Securities, the introduction of new corporate structure by Bharti Airtel to tap digital opportunities may lead to potential savings on statutory levies for the telco.
Further, it added that the move would also make the organisation adjusted gross revenue (AGR) tax efficient.
As per ICICI, the new structure indicates no immediate monetisation plans of digital assets, and rightfully so, as it is yet to exploit the potential from the business. However, in future, when business becomes large, it can always restructure efficiently to monetise the digital asset.
Under the new structure, Bharti Airtel, housing the digital assets, becomes the holding company of separate units – telecom business under Airtel, Airtel Payments Bank, international businesses including Airtel Africa and infrastructure business under Nxtra and Indus.
