New Delhi, Oct 13 (PTI) Shares of Bharti Airtel today
closed with up to 8 per cent gains as the company announced
acquisition of Tata group’s loss-making mobile telephony
business, almost for free, boosting its spectrum holding and
The stock soared 7.89 per cent to settle at Rs 431.60 on
BSE. During the day, it zoomed 8.98 per cent to Rs 436.
At NSE, shares of the company surged 7.65 per cent to end
at Rs 430.90.
Strong gains in the stock price boosted the company’s
market valuation by Rs 12,612.79 crore to Rs 1,72,527.79
The stock was the biggest gainer among blue-chips on both
the key indices during the day.
Shares of Tata Teleservices Maharashtra (TTML) advanced
by 9.95 per cent to Rs 4.86 – its highest trading permissible
limit for the day – on BSE.
At NSE, it climbed 9 per cent to Rs 4.80.
Financial services firm UBS said near-term earnings
downside notwithstanding, it saw Bharti Airtel as a key long
term winner given its scale, spectrum footprint and network
Bharti Airtel is set to take over Tata group’s money-
losing mobile business from November 1, saving the Tatas from
the prospect of having to shut down the struggling unit.
Airtel, for whom it will be the seventh acquisition in
five years, will acquire 4 crore customers of Tata
Teleservices Ltd (TTSL) and Tata Teleservices Maharashtra
Ltd (TTML) in 19 telecom circles or zones on “a debt-free,
cash-free basis”, the two groups announced in separate but
identical press statements yesterday.
While all of the Rs 31,000 crore debt will remain with
the Tatas, Airtel will assume payment of close to 20 per cent
of the Rs 9,000-10,000 crore deferred payments for the
spectrum to the government. The Tatas will pay the rest. PTI
This is published unedited from the PTI feed.