Bharti Airtel up 4% after huge block deal

The stock was up 4% to Rs 565 on the BSE in early morning trade after about 185 million equity shares of the company changed hands on the counter

Bharti Airtel was up 4% to Rs 565 on the BSE in early morning trade after about 185 million equity shares of the company changed hands on the counter.

Last week, on October 30, Bharti Telecom, promoter firm of Bharti Airtel, in a regulatory filing said that it will acquire additional up to 184.7 million shares or 4.62% at market price in the telecom major on or after November 3.

Bharti Telecom acquired 184,710,183 equity shares of Bharti Airtel from another promoter firm of the telecom major, Indian Continent Investment Limited (ICIL), at price of Rs 417.35 per share derived with weighted average market price of 60 days trading period, as per the filing.

The telco in a regulatory filing on Thursday clarified that ‘the volume weighted average market price for a period of 60 trading days preceding the date of issuance of the said intimation (based on trades on NSE) has been inadvertently mentioned as Rs 417.35 per share instead of Rs 435.37 per share’.

With this transaction, Bharti Telecom stake in the company will increase 50.1% in Bharti Airtel from 45.48% and ICIL stake will come down to 2.03%, it added.

At 10:14 AM; the stock was up 2% at Rs 554, as compared to 0.07% rise in the S&P BSE Sensex. It was trading close to its record high of Rs 575 touched on October 10, 2007 in intra-day trade.