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Bharti Airtel edges higher after successfully divesting part stake in subsidiary

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Capital Market
Last Updated : Nov 15 2017 | 12:02 AM IST

Bharti Airtel gained 0.21% to Rs 499.10 at 12:45 IST on BSE after the company announced the successful divestment of 8.3 crore shares in its subsidiary Bharti Infratel.

The announcement was made during market hours today, 14 November 2017.

Meanwhile, the S&P BSE Sensex was down 48.52 points or 0.15% at 32,985.04.

On the BSE, 1.12 lakh shares were traded on the counter so far as against the average daily volumes of 77.95 lakh shares in the past one quarter. The stock had hit a high of Rs 504.35 and a low of Rs 496.10 so far during the day. The stock had hit a 52-week high of Rs 565 on 3 November 2017. The stock had hit a 52-week low of Rs 283.95 on 9 November 2016.

The stock had outperformed the market over the past one month till 13 November 2017, gaining 15.4% compared with 1.85% gains in the Sensex. The scrip had also outperformed the market in past one quarter, rising 20.11% as against Sensex's 5.83% rise. The scrip had also outperformed the market in past one year, gaining 65.05% as against Sensex's 23.17% rise.

The large-cap company has equity capital of Rs 1998.70 crore. Face value per share is Rs 5.

Bharti Airtel said that through its wholly owned subsidiary Nettle Infrastructure Investments (Nettle), announced the successful divestment of 8.3 crore shares in its subsidiary Bharti Infratel through a secondary share sale in the stock market.

The sale was for a total consideration of over Rs 3325 crore and was executed at a price of Rs 400.60 per share. Bharti Airtel will primarily use the proceeds from this sale to reduce its debt. Following the closure of this transaction, Bharti Airtel and its wholly owned subsidiaries together have an equity holding of 53.51% in Bharti Infratel.

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The allocation was done to global investors, fund managers and long only funds, including many repeat investors. Led by healthy investor appetite, the deal was upsized by over 25%.

Shares of Bharti Infratel fell 2.68% to Rs 400.10.

Bharti Airtel's consolidated net profit fell 63.7% to Rs 586.10 crore on 11.7% decline in net sales to Rs 21776.90 crore in Q2 September 2017 over Q2 September 2016.

Bharti Airtel is a leading global telecommunications company.

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First Published: Nov 14 2017 | 1:46 PM IST

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