Bharti Airtel rose 2.53% to Rs 324.70 at 9:25 IST on BSE after the company announced a long-term strategic investment from Qatar Foundation Endowment.
The announcement was made before trading hours today, 3 May 2013.
Meanwhile, the BSE Sensex was down 77.48 points, or 0.39%, to 19,658.29.
On BSE, 2.63 lakh shares were traded in the counter as against an average daily volume of 4.69 lakh shares in the past one quarter.
The stock hit a high of Rs 331 and a low of Rs 322.80 so far during the day. The stock had hit a 52-week high of Rs 370.40 on 25 January 2013. The stock had hit a 52-week low of Rs 238.50 on 30 August 2012.
The stock had outperformed the market over the past one month till 2 May 2013, rising 8.38% compared with the Sensex's 3.65% rise. The scrip had, however, underperformed the market in past one quarter, sliding 4.18% as against Sensex's 0.23% fall.
The large-cap company has an equity capital of Rs 1898.76 crore. Face value per share is Rs 5.
Bharti Airtel announced that it has entered into a binding agreement with Qatar Foundation Endowment (QFE), under which Bharti will issue 19.98 crore of its new shares to QFE representing a shareholding of 5% in the company, post issuance of the new shares.
As per the agreement, QFE will subscribe to 19.98 crore new shares of Bharti at a price of Rs 340 per share amounting to a total consideration of $1.26 billion (Rs 6796 crore) . The investment will further strengthen the capital structure and provide further flexibility for Bharti Airtel to deliver on its growth strategy, Bharti Airtel said in a statement.
QFE is a long-term global investor with a broad mandate to make direct and managed investments. QFE was recently established to provide a sustainable income stream that will ultimately fund Qatar Foundation for education, science and community development (Qatar Foundation) operations in perpetuity.
Mr. Sunil Bharti Mittal, Chairman, Bharti commented, "I am delighted to welcome another high quality long-term institutional investor to our shareholder base. This strategic partnership with QFE demonstrates the confidence they have in the Company and our strategy for growth. In addition, this agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India. We look forward to a long and fruitful partnership with QFE".
Speaking on the agreement, Rashid Al-Naimi, Acting Chief Executive Officer, QFE, said, "We are excited to be making a significant investment in one of the leading telecommunications companies in the world. As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets. QFE looks forward to supporting Bharti in realising the full potential of this world class business."
Bharti Airtel announced on Thursday, 2 May 2013, that its wholly-owned subsidiary, Bharti Airtel Holdings (Singapore) and Warid Group have reached an agreement, wherein, Bharti will acquire 30% equity stake of Warid in Airtel Bangladesh. With this, Bharti will own 100% of Airtel Bangladesh. Bharti had acquired 70% stake in Warid Telecom, Bangladesh in January 2010.
Bharti Airtel's consolidated net profit as per International Financial Reporting Standards (IFRS) fell 49.4% to Rs 509 crore on 9.2% rise in total revenue to Rs 20448 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results before market hours on Thursday, 2 May 2013. Consolidated net profit fell 46.6% to Rs 2276 crore on 12.4% increase in total revenue to Rs 80311 crore in the year ended March 2013 over the year ended March 2012.
Bharti Airtel is a leading global telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 4 mobile service providers globally in terms of subscrib In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In rest of the geographies, it offers 2G, 3G wireless services and mobile commerce. The company had over 271 million customers across its operations at the end of March 2013.
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