According to CLSA, the Bharti Infratel – Indus Towers merger will offer limited synergies in operating expenditure due to limited overlap in operations.

As per the brokerage firm, only four out of 22 circles pan-India overlap in operations. As per its analysis, a reduction of around 10 per cent in employee and other costs could lead to about 3 per cent higher earnings.

That said, CLSA estimates the merged entities will be able to accrue a dividend of Rs 48 billion, around 8 per cent of the yield in next three months.