Bharti Infratel extends recent gains

Bharti Infratel rose 1.06% to Rs 209 at 10:30 IST on BSE, with the stock extending recent gains triggered by the company signing a Master Services Agreement with Reliance Jio Infocomm for sharing of telecom tower infrastructure.

Meanwhile, the S&P BSE Sensex was up 214.34 points or 1% at 21,728.21.

On BSE, so far 41,000 shares were traded in the counter as against average daily volume of 1.63 lakh shares in the past one quarter.

The stock hit a high of Rs 214.70 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 208 so far during the day. The stock had hit a record low of Rs 126.05 on 28 August 2013.

The stock had outperformed the market over the past one month till 6 March 2014, surging 21.97% compared with the Sensex's 5.92% rise. The scrip had also outperformed the market in past one quarter, jumping 22.19% as against Sensex's 2.46% rise.

The large-cap company has equity capital of Rs 1888.93 crore. Face value per share is Rs 10.

Shares of Bharti Infratel have rallied 9.19% in three trading sessions from Rs 191.40 on 4 March 2014 after the company after market hours on 4 March 2014 said it has signed a Master Services Agreement with Reliance Jio Infocomm (Reliance Jio), a subsidiary of Reliance Industries (RIL) for sharing of telecom tower infrastructure. Under the agreement, Reliance Jio would utilize the telecom tower infrastructure of Bharti Infratel to launch its services across the country. As per the agreement, the pricing would be at 'arm's length,' based on prevailing market rates, Bharti Infratel and Reliance Jio said in a combined statement.

Reliance Jio Infocomm, a subsidiary RIL, is the first telecom operator to hold pan India Unified License.

Bharti Infratel's consolidated net profit surged 61.6% to Rs 410.50 crore on 4% growth in net sales to Rs 2731.10 crore in Q3 December 2013 over Q3 December 2012.

Bharti Infratel, a subsidiary of Bharti Airtel, is one of the largest tower infrastructure providers in India. With Bharti Infratel's towers and its 42% interest in Indus, the company has an economic interest in the equivalent of 82,813 towers and 163,370 co-locations as of 31 December 2013.

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