Bharti Airtel shares fall 3% after Africa IPO delay report; telco denies report, says no change in plans

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Updated: October 29, 2018 5:17:23 PM

Denying news report that claimed that Sunil Mittal-led Bharti Airtel is delaying a planned initial public offering (IPO) of its Africa unit in wake of volatility in the emerging-market stocks, country’s second largest telecom firm said, “IPO preparations are proceeding are as per plan and there is no change in plans.”

Bharti Airtel shares plunged 2.78 percent to a day’s low of Rs 290 from a high of Rs 303.10.

Denying news report that claimed that Sunil Mittal-led Bharti Airtel is delaying a planned initial public offering (IPO) of its Africa unit in wake of volatility in the emerging-market stocks, country’s second largest telecom firm said, “IPO preparations are proceeding are as per plan and there is no change in plans.”

“Airtel Africa IPO preparations are proceeding as per plan and there is no change in plans. New board is in place with new investor’s representatives and we remain very confident about the IPO process,” company said in a statement.

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Bloomberg had earlier reported citing unidentified people that he telecom major was originally planning to publicly list its Africa unit in London pushed back the share sale by about half a year due to volatility in the emerging stocks. The telecom operator said last week that it raised $1.25 billion from six global investors including SoftBank Group Corp , Warburg Pincus LLC and Temasek Holdings (Private) Ltd.

Post this news, the Bharti Airtel shares plunged over 3 percent to Rs 292 from day’s high.  The stocks ended the day 1.50 percent down at Rs 293.65.

Bharti Airtel Q2 results

Meanwhile, Bharti Airtel has posted Rs 118.8 crore consolidated net profit in the quarter ended September, in a major surprise for the market, which was expecting a net loss to the tune of Rs 110-990 crore. However, as compared with the same period last year, the profit has fallen 65.36% on-year from Rs 343 crore.

The Sunil Mittal’s telco posted a deferred tax write-back of Rs 2,632.60 crore for the quarter ended September, which is the major reason for the unexpected profit.

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