Bharti Infratel surged 4% to Rs 199.05 at 9:17 IST on BSE after the company said it has signed a Master Services Agreement with Reliance Jio Infocomm for sharing of telecom tower infrastructure.
The announcement was made after market hours on Tuesday, 4 March 2014.
Meanwhile, the S&P BSE Sensex was up 68.74 points or 0.32% at 21,278.47.
On BSE, so far 19,000 shares were traded in the counter as against average daily volume of 7.25 lakh shares in the past two weeks.
The stock hit a high of Rs 205 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 196.55 so far during the day.
Reliance Jio Infocomm (Reliance Jio), a subsidiary of Reliance Industries (RIL) and Bharti Infratel, after market hours on Tuesday, 4 March 2014 announced the signing of a Master Services Agreement. Under the agreement, Reliance Jio would utilize the telecom tower infrastructure of Bharti Infratel to launch its services across the country. As per the agreement, the pricing would be at 'arm's length,' based on prevailing market rates, Bharti Infratel and Reliance Jio said in a combined statement.
D S Rawat, CEO - Bharti Infratel said, "We are delighted with this agreement to offer our world-class telecom infrastructure to Reliance Jio. Our vast footprint and high network uptime levels will offer significant synergies of faster access to market and lower operational costs. The agreement would also benefit our existing customers with lower rentals and energy charges as a result of additional sharing. We look forward to a long and mutually beneficial relationship with Reliance Jio".
Sanjay Mashruwala, Managing Director, Reliance Jio said, "This agreement is in line with our earlier comprehensive telecom infrastructure sharing arrangement with Bharti Airtel aimed at avoiding duplication of infrastructure, wherever possible, and to preserve capital and the environment. The agreement will help us with the faster roll out of our services across the country".
Reliance Jio Infocomm, a subsidiary RIL, is the first telecom operator to hold pan India Unified License.
Bharti Infratel's consolidated net profit surged 61.6% to Rs 410.50 crore on 4% growth in net sales to Rs 2731.10 crore in Q3 December 2013 over Q3 December 2012.
Bharti Infratel, a subsidiary of Bharti Airtel, is one of the largest tower infrastructure providers in India. With Bharti Infratel's towers and its 42% interest in Indus, the company has an economic interest in the equivalent of 82,813 towers and 163,370 co-locations as of 31 December 2013.
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