Bharti Infratel inches higher in early trade

Bharti Infratel rose 0.28% to Rs 374.35 at 9:19 IST on BSE after the company said its board will consider distribution of profits till the year ended 31 March 2016, by way of dividend or buyback of a portion of equity shares or a combination of both.

The announcement was made before market hours today, 22 April 2016.

Meanwhile, the S&P BSE Sensex was down 58.36 points or 0.23% at 25,822.02.

On BSE, so far 5,012 shares were traded in the counter as against average daily volume of 61,000 shares in the past two weeks. The stock hit a high of Rs 380 and a low of Rs 373.95 so far during the day. The stock had hit a record high of Rs 505 on 29 May 2015. The stock had hit a 52-week low of Rs 341.60 on 29 September 2015.

Bharti Infratel said that the company's board of directors will consider the recommendations for distribution of profits till the year ended 31 March 2016 (FY 2016), by way of dividend or buyback of a portion of fully paid up equity shares or a combination thereof, in its meeting to be held on 26 April 2016, when the company announces its FY 2016 results.

Shares of Bharti Infratel had witnessed a sharp slide recently on media reports that Bharti Airtel will sell more than 5% stake in the telecom tower company through an open market block deal. The stock had lost 5.8% in the preceding two trading sessions to settle at Rs 373.30 yesterday, 21 April 2016, from its close of Rs 396.30 on 18 April 2016. Bharti Airtel owns a 71.7% stake in Bharti Infratel (as on 31 December 2015). Bharti Airtel plans to use the sale proceeds to cut debt, media reports suggested. The report did not give a timeline for the planned sale.

On a consolidated basis, net profit of Bharti Infratel rose 11.5% to Rs 565.40 crore on 4.9% rise in net sales to Rs 3093 crore in Q3 December 2015 over Q3 December 2014.

Bharti Infratel is India's leading provider of tower and related infrastructure and it deploys, owns and manages telecom towers and communication structures, for various mobile operators.

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