Bharti Airtel drops on buzz it may have to pay Rs 436 crore for merger of subsidiary

Bharti Airtel fell 0.43% to Rs 414 at 14:51 IST on BSE on reports the firm may have to pay Rs 436 crore for merging its subsidiary ABSPL with itself, as it would mean a change in permits from that of an internet provider to a unified license.

Meanwhile, the S&P BSE Sensex was up 2.15 points or 0.01% at 27,114.36.

On BSE, so far 1.28 lakh shares were traded in the counter as against average daily volume of 3.49 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 0.98% at the day's high of Rs 419.90 so far during the day, which is a 52-week high for the counter. The stock lost as much as 1.63% at the day's low of Rs 409 so far during the day. The stock had hit a 52-week low of Rs 282.10 on 24 February 2014.

The stock had outperformed the market over the past one month till 18 September 2014, surging 10.48% compared with the Sensex's 2.73% rise. The stock had also outperformed the market in past one quarter, jumping 22.42% as against Sensex's 7.39% rise.

The large-cap company has equity capital of Rs 1998.70 crore. Face value per share is Rs 5.

According to reports, Bharti Airtel will have to pay the fee for merger since Airtel Broadband Services (ABSPL) had an internet service provider's (ISP) licence to provide wireless broadband but merging it with a unified licence (UL) holder will allow the company to provide all kinds of wireless telephony using the 4G spectrum, and not just internet.

Bharti Airtel's consolidated net profit rose 60.9% to Rs 1108.50 crore on 13.3% growth in net sales to Rs 22961.60 crore in Q1 June 2014 over Q1 June 2013.

Bharti Airtel is a leading global telecommunications company with operations in 20 countries across Asia and Africa. The company ranks amongst the top 4 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G wireless services and mobile commerce. Bharti Airtel had over 299 million customers across its operations at the end of June 2014.

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