Shares of India’s largest telecom player Airtel recovered partially on Thursday after Wednesday’s slump of 4% on news that Qatar Foundation sold its entire 5% stake in the company for about Rs 9,600 crore.
Shares of India’s largest telecom player Airtel recovered partially on Thursday after Wednesday’s slump of 4% on news that Qatar Foundation sold its entire 5% stake in the company for about Rs 9,600 crore. Following a value buying in Airtel shares, the stock picked up momentum in the early trading session continued its gaining streak through the day. The stock ended leading the benchmark Sensex index today, rose 2.39% or Rs 11.85 to settle at the day’s high of Rs 507.
In a development yesterday, Three Pillars Pte, an affiliate of Qatar Foundation Endowment, sold 19.98 crore shares in Bharti Airtel via an open market sale. Qatar Foundation said in a statement that Three Pillars’ representative on board of Bharti Airtel will step down immediately post settlement of the sale.
The block trade was priced at Rs 481 per share, a discount of 6.4% to Tuesday’s closing price of Rs 514.35 on BSE. However, the sale has resulted in a gain of about 51% for QFE which had paid Rs 340 apiece in 2013 for the acquisition of the shares. UBS was the sole book runner for this transaction. Yesterday, Airtel closed 3.73% lower at Rs 495.15 on the BSE. Qatar Foundation Endowment had acquired the 5% equity stake in Bharti Airtel for Rs 6,796 crore way back in 2013.
Meanwhile, Indian stock markets closed on a lighter note on Thursday after a choppy trade through the day. BSE Sensex ended up 32.12 points or 0.1% at 33,250.93 points whereas NSE Nifty settled 5.8 points or 0.06% higher at 10,308.95 points. The shares of heavyweight companies such as ITC and HDFC emerged as the major draggers while a surge in Reliance Industries and ICICI Bank contributed the most in the Sensex gains.