Bharti Airtel gained 0.15% to Rs 310 at 10:30 IST on BSE after the company announced the completion of the merger of its subsidiary Airtel Bangladesh with Robi Axiata, a unit of Axiata Group Berhad.
The announcement was made after market hours yesterday, 16 November 2016.Meanwhile, the S&P BSE Sensex was down 24.57 points or 0.12% at 26,267.38.
On BSE, so far 40,510 shares were traded in the counter as against average daily volume of 3.04 lakh shares in the past one quarter. The stock hit a high of Rs 315.30 and a low of Rs 308.80 so far during the day. The stock had hit a 52-week high of Rs 384.90 on 28 April 2016. The stock had hit a 52-week low of Rs 282.30 on 29 January 2016. The stock outperformed the market over the past one month till 16 November 2016, gaining 1.2% compared with the Sensex's 4.97% fall. The scrip however underperformed the market in past one quarter, declining 9.9% as against the Sensex's 6.29% decline.
The large-cap company has equity capital of Rs 1998.70 crore. Face value per share is Rs 5.
Bharti Airtel said that the merger was completed following the fulfilment of the condition precedents to the agreement and filing of the merger order with the registrar of joint stock companies and firms of Bangladesh Court. Post the merger, Axiata will hold 68.7% stake in the combined entity, while Airtel will hold 25%. The remaining 6.3% stake will be held by NTT DoCoMo. The combined entity will be the second largest mobile operator in Bangladesh with approximately 3.22 crore customers and will operate under the Robi Axiata brand. It is well positioned to deliver an unparalleled portfolio of innovative mobile and broadband offerings at affordable rates with deep network coverage.
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The joint strengths of Robi and Airtel sets the stage for the company to deliver the widest mobile network coverage across Bangladesh, enhancing its stronghold in the mobile Internet segment as well as consolidating its position as the second largest operator in the country.
The merger strengthens the long-term sustainability of the Bangladesh telecoms landscape and business environment, and will secure faster nationwide rollout of mobile broadband as well as contribute significantly to the overall economy of the country.
On a consolidated basis, Bharti Airtel's net profit fell 4.9% to Rs 1460.70 crore on 3.4% growth in net sales to Rs 24651.50 crore in Q2 September 2016 over Q2 September 2015.
Bharti Airtel is a leading global telecommunications company with operations in 18 countries across Asia and Africa.
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