- Bharat Telecom withdraws from the Development & Enterprise Market (DEM) of the Stock Exchange of Mauritius (SEM).
- The move is part of a broader restructuring plan to bring in new investors.
- Significant financial challenges, including debts to key bandwidth providers, have influenced this decision.
Bharat Telecom Ltd, a key player in Mauritius’s telecommunications industry, has announced its decision to withdraw from the Development & Enterprise Market (DEM) of the Stock Exchange of Mauritius (SEM). The move made public on January 17, 2017, is a strategic step in the company’s broader restructuring efforts aimed at stabilising its financial situation and attracting new investors.
Financial pressures and strategic decisions
The decision to delist from the DEM comes in the wake of mounting financial pressures on Bharat Telecom. Founded in 2010, the company was the pioneer in introducing Fibre Optic technology to Mauritius, and by 2012, it had launched its services using its own fiber cables. Despite gaining a solid customer base over the past five years, Bharat Telecom has struggled with significant financial challenges.
The company owes substantial amounts to three major bandwidth providers: Mauritius Telecom ($250,000), Belgacom ($83,000), and Emtel ($19,440). These debts, totaling over $350,000, have necessitated a reevaluation of Bharat Telecom’s financial strategies. According to Baljinder Sharma, the company’s CEO, the withdrawal from the SEM is a critical part of the restructuring process. “This restructuring requires our exit from the stock market,” Sharma explained, emphasising that the move is essential for attracting fresh capital.
Industry challenges and the path forward
Bharat Telecom’s exit from the stock exchange has sparked concern among industry observers. The delisting means the company will no longer be obligated to publish its financial accounts, raising questions about transparency and accountability. Some experts have criticised the SEM’s listing criteria, arguing that stricter regulations are needed to prevent similar situations in the future.
Despite these challenges, Bharat Telecom remains focused on innovation and customer service. The company has invested heavily in research and development, aiming to enhance its service offerings and maintain its competitive edge in an industry that is rapidly evolving. With the telecom sector in Mauritius facing increasing demand for high-speed internet, the rise of cloud computing, and the growing importance of the Internet of Things (IoT), Bharat Telecom’s restructuring could position it to better meet these challenges.
About Bharat Telecom Ltd
Bharat Telecom Ltd, incorporated in 2010, was the first company to introduce Fibre Optic technology in Mauritius. Since launching its services in October 2012, the company has acquired a substantial customer base, including both households and businesses. Despite facing financial difficulties, Bharat Telecom remains committed to delivering cutting-edge technology and superior service to its customers. The company’s highly skilled engineers continue to develop innovative solutions aimed at enhancing the performance and reliability of its network, ensuring that customers have access to the latest technological advancements.
