Bharti Airtel top gainer as it receives approval for merger with Telenor

Shares of Bharti Airtel rallied nearly 4% after the company said it has received approvals from market regulator Sebi and stock exchanges (BSE and NSE) for the proposed merger with Telenor India.

Reacting to the news, the stock rose as much as 3.8% to Rs 381 on the BSE, and was the top Sensex gainer. 

So far, 81,000 exchanged hands on the counter against its two-week average of 3.91 lakh shares. 

The stock underperformed the Sensex by gaining 3.5% over the past one month against 4% rise in Sensex.

Airtel had announced in April to acquire the business of Telenor India for an undisclosed sum in all seven circles where the latter holds spectrum.

As part of the deal, the Sunil Bharti Mittal-owned company would take over Telenor India's spectrum, licences and operations, including its employees and customer base of 44 million.

"It has received the approval of the Securities and Exchange Board of India (SEBI), BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) for the proposed scheme of merger between Airtel and Telenor (India) Communications Private Limited," said Airtel in a filing to BSE. 

The company further stated that Telenor India and Airtel have today filed the joint company application before the New Delhi Bench of the National Company Law Tribunal for approval of the proposed scheme of merger. The merger is inter alia subject to other statutory approvals including from the Competition Commission of India.