Bharti Infratel slips as Bharti Airtel mulls stake sale

Bharti Infratel fell 1.37% to Rs 373.50 at 10:38 IST on BSE after Bharti Airtel said it plans to sell a significant stake in Bharti Infratel.

Meanwhile, the BSE Sensex was down 227.73 points, or 0.81%, to 27,863.69.

On BSE, so far 21,000 shares were traded in the counter, compared with average daily volume of 2 lakh shares in the past one quarter. The stock hit a high of Rs 382 and a low of Rs 370.20 so far during the day. The stock hit a 52-week high of Rs 436.40 on 30 December 2015. The stock hit a 52-week low of Rs 302.10 on 24 June 2016. The stock had outperformed the market over the past 30 days till 25 October 2016, rising 3.65% compared with 0.72% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 0.16% as against Sensex's 0.24% rise.

The large-cap company has equity capital of Rs 1,896.67 crore. Face value per share is Rs 10.

Bharti Airtel announced after market hours yesterday, 25 October 2016, that its board of directors authorised a committee of directors to evaluate options for monetization of a significant stake in Bharti Infratel, in accordance with applicable regulations. The final outcome of this exercise will be placed before the board for approval, before any final decision is taken. Bharti Airtel has also requested Bharti Infratel to allow sharing of any information with any prospective buyer, subject to customary confidentiality arrangements. There is no certainty of any transaction until such time the board reviews and approves the final proposal.

Bharti Infratel, India's leading telecom tower infrastructure provider, is a significant subsidiary of Bharti Airtel. Bharti Airtel has, in the past, divested stakes in Bharti Infratel to a clutch of private equity investors led by Temasek, KKR and other high quality investors in 2008. This was followed by an initial public offering (IPO) in the year 2012 and block sales in the stock market in 2014 and 2015. Bharti Airtel holds 71.96% stake in Bharti Infratel (as on 30 September 2016).

On a consolidated basis, net profit of Bharti Infratel rose 30.80% to Rs 773.80 crore on 9.01% rise in net sales to Rs 1496.30 crore in Q2 September 2016 over Q2 September 2015.

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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