Bharti Airtel Ltd. and Bajaj Finance Ltd. entered into a "strategic" partnership to create a digital platform for financial services to transform last-mile delivery.
This will be "one of India's largest digital platforms" and is a "one-of-a-kind partnership," Airtel said in an exchange filing on Monday. This partnership will bring together Airtel's 370 million customer base and Bajaj Finance's diversified suite of 27 product lines, the filing said.
Airtel will initially offer Bajaj Finance's retail financial products on its Airtel Thanks App for a seamless and secure customer experience. This will later be offered through the telecom operators' nationwide network of stores.
"The combined strength of the companies' digital assets will enable Airtel and Bajaj Finance to significantly deepen penetration of financial products and services."
The combined reach, scale and distribution strength of the two companies will serve as the cornerstone of this partnership, according to Gopal Vittal, vice chairman and managing director, Bharti Airtel. "We are building Airtel Finance as a strategic asset for the group and will continue to invest in and grow the business."
"Our partnership with Airtel not only leverages India's digital infrastructure for inclusive growth but also brings together the expertise and reach of two of India's leading and most-trusted brands," said Rajeev Jain, managing director, Bajaj Finance.
Bajaj Finance, Airtel Share Price
Bajaj Finance stock rose as much as 4.01% during the day to Rs 7,469.9 apiece on the NSE. It was trading 3.52% higher at Rs 7,434.9 apiece, compared to a 0.60% advance in the benchmark Nifty 50 as of 1:39 a.m.
It has risen 1.83% during the last 12 months. The relative strength index was at 61.
Twenty-eight out of the 37 analysts tracking the company have a 'buy' rating on the stock, five suggest a 'hold' and four have a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 8.6%.
Airtel stock rose as much as 1.03% during the day to Rs 1,644 apiece on the NSE. It was trading 0.77% higher at Rs 1,649 apiece, compared to a 0.60% advance in the benchmark Nifty 50.
It has risen 45% during the last 12 months. The relative strength index was at 60.
Twenty-nine of the 35 analysts tracking the company have a 'buy' rating on the stock, four suggest a 'hold' and two have a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 10.6%.
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