Shares of India's major telecom firm Bharti Airtel jumped on Tuesday afternoon, after the firm scrapped low-valued post paid plans of Rs 299.
Shares of India’s major telecom firm Bharti Airtel jumped on Tuesday afternoon, after the firm scrapped low-valued post paid plans of Rs 299. Bharti Airtel shares gained by more than 6.5% to hit the day’s high at Rs 339.50. A CNBC TV18 report said that Airtel has made Rs 349/399 plans as the minimum for its postpaid customers. Airtel’s website shows the plans starting at Rs 499, followed by Rs 749 and Rs 999. Earlier this month, the firm’s mega Rs 25,000 crore rights issue opened for subscription. As a part of the issue, the Sunil Mittal-led telco looks to raise up to Rs 25,000 crore by issuing fully paid up shares at a share price of Rs 220 per share, and an additional Rs 7,000 crore via foreign currency perpetual bond issue. The telecom firm has fixed the entitlement ratio at 19 shares for every 67 shares held.
The rights issue will remain open till May 17. The rights issue is part of a larger Rs 32,000 crore capital raising programme. Airtel had received commitment from its single-largest shareholder Singtel, promoters, and GIC Singapore to participate in the Rs 32,000 crore. The firm aims to raise Rs 7,000 crore through foreign currency-denominated perpetual bonds.
In the latest quarter, Bharti Airtel reported a 29% jump in net profit, aided by a one-time gain of Rs 2,022 crore. The company reported a surprise consolidated net profit of Rs 107.2 crore, during the January-March period. Excluding this one-off gain, Bharti Airtel has reported a loss of nearly Rs 1,200 crore, which is more than Rs 1,041 crore (before exceptional gain) in the third quarter, according to the filing to the exchanges. The firm had announced that its Africa operations’ net profit has grown to $83 million for the quarter ended March 31, as compared to a net loss of $49 million in the same period previous fiscal.