Bharti Airtel slips on heavy volumes

Bharti Airtel fell 3.40% to Rs 572.85 on the BSE after the counter witnessed block deals in early trade today, 26 May 2020.

On the BSE, the counter clocked a volume of 16.39 crore shares as against its average trading volume of 6.06 lakh shares in the past one quarter. The stock fell 5.38% to hit a low of Rs 561.10 on BSE in early trade today.

On the NSE, the counter clocked a volume of 3.13 crore shares compared with its average trading volume of 1.75 crore shares in the past one quarter. The stock fel 4.11% to hit a low of Rs 568.60 on NSE in early trade today.

In the F&O segment, Bharti Airtel's 28 May 2020 futures were currently trading at 572.65, a discount of 0.2 points compared with the spot price of 572.85.

On the options front, the Airtel's option chain for 28 May 2020 expiry showed maximum call open interest (OI) of 31.68 lakh contracts at the 600 strike price. Maximum put OI of 14.21 lakh contracts was seen at 550 strike price.

The media reported that Bharti Telecom, promoter of Bharti Airtel, will sell $1 billion worth of stake in the mobile operator through a block deal on Tuesday. The block deal involving 2.75% stake sale would be conducted at around Rs 558 per share. The floor price marks a discount of 5.90% to the company's stock price of Rs 593 on Friday. The move will reportedly help the telecom major in becoming debt free. Bharti Telecom held 38.79% stake in Bharti Airtel as on 31 March 2020.

Bharti Airtel is a leading global telecommunications company with operations in 18 countries across Asia and Africa.

The telecom major reported a consolidated net loss of Rs 5327 crore in Q4 March 2020 (Q4 FY20) as against net profit of Rs 107.20 crore in Q4 March 2019 (Q4 FY19). The exceptional charge of Rs 7004 crore during Q4 March 2020 comprises of a charge on account of reassessment of regulatory cost. Net sales jumped 15.1% to Rs 23,722.70 crore during the period under review.

The company said its average revenue per user (ARPU) rose 25.20% to Rs 154 in Q4 FY20 from Rs 123 in Q4 FY19. The company total customer base increased by 4.9% to 42.3 crore customers in Q4 March 2020 from 40.3 crore customers in Q4 March 2019.

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