Bharti Infratel nears 52-week high; stock zooms 40% in a month

The company said it has initiated due process for getting final approval from stock exchanges to update the name to Indus Towers

Shares of Bharti Infratel traded 3 per cent higher at Rs 252.85 on the BSE on Monday, after the company said it has received the approval from the Registrar of Companies (ROC) for changing its name to Indus Towers, following the recent merger of the two companies to create a mega tower entity.

The stock of the company, engaged in activities of providing telecom tower infrastructure sharing for telecommunication services, is trading close to its 52-week high of Rs 262.80, touched on December 20, 2019.

"The company has received approval from the Registrar of Companies, the National Capital Territory (NCT) of Delhi and Haryana for change of name of the company from Bharti Infratel Limited to Indus Towers Limited as provided in the scheme of amalgamation and arrangement between the company and erstwhile Indus Towers Limited and their respective shareholders and creditors," Bharti Infratel said in a BSE filing.

The company said it has initiated due process for getting final approval from stock exchanges to update the name.

In the past one month, Bharti Infratel's stock has outperformed the market by surging 40 per cent as the company completed merger with Indus Towers to create a mega tower company (renamed Indus Towers). In comparison, the S&P BSE Sensex gained 6 per cent during the same period.

Earlier this month, on December 2, 2020, Bharti Airtel’s wholly-owned subsidiary Nettle Infrastructure Investments bought 133 million shares, or 4.94 per cent, additional stake in Bharti Infratel for Rs 2,882 crore via block deals. With this acquisition by Nettle, the aggregate shareholding of Bharti (along with subsidiaries) has increased to 41.66 per cent in Infratel against 36.73 per cent, earlier.

Since then, Bharti Infratel has seen its share price rise by 17 per cent, as against a 3 per cent rise in the S&P BSE Sensex.