Bharti Infratel rose 2.07% to Rs 355 at 14:19 IST on BSE on media reports that two big foreign investors are eyeing major stake in the telecom tower infrastructure provider.
Meanwhile, the BSE Sensex was up 60.81 points, or 0.22%, to 27,991.02.
On BSE, so far 31,000 shares were traded in the counter, compared with average daily volume of 1.76 lakh shares in the past one quarter. The stock hit a high of Rs 358 and a low of Rs 348.10 so far during the day. The stock hit a 52-week high of Rs 436.40 on 30 December 2015. The stock hit a 52-week low of Rs 302.10 on 24 June 2016. The stock had underperformed the market over the past 30 days till 30 October 2016, sliding 4.71% compared with 0.23% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 12.23% as against Sensex's 0.26% decline.
The large-cap company has equity capital of Rs 1896.67 crore. Face value per share is Rs 10.
Private equity heavyweight KKR and pension giant Canada Pension Plan Investment Board (CPPIB) are reportedly in talks with Sunil Mittal led Bharti Airtel to acquire a significant stake in its listed tower arm Bharti Infratel.
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Last week, Bharti Airtel announced that the board of directors of the company at its meeting held on 25 October 2016, has authorised a committee of directors to evaluate options for monetization of a significant stake in Bharti Infratel, in accordance with applicable regulations. The final outcome of this exercise will be placed before the board for approval, before any final decision is taken. Bharti Airtel has also requested Bharti Infratel to allow sharing of any information with any prospective buyer, subject to customary confidentiality arrangements. There is no certainty of any transaction until such time the board reviews and approves the final proposal. The announcement was made after market hours on 25 October 2016.
Bharti Infratel, India's leading telecom tower infrastructure provider, is a significant subsidiary of Bharti Airtel. Bharti Airtel has, in the past, divested stakes in Bharti Infratel to a clutch of private equity investors led by Temasek, KKR and other high quality investors in 2008. This was followed by an initial public offering (IPO) in the year 2012 and block sales in the stock market in 2014 and 2015. As on date Airtel holds 71.96% stake in Bharti Infratel.
On a consolidated basis, net profit of Bharti Infratel rose 30.80% to Rs 773.80 crore on 9.01% rise in net sales to Rs 1496.30 crore in Q2 September 2016 over Q2 September 2015.
Bharti Infratel is India's leading provider of tower and related infrastructure and it deploys, owns and manages telecom towers and communication structures, for various mobile operators.
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