Bharti Airtel was trading higher on reports Singapore Telecommunications (SingTel) will buy around 7.39 per cent stake in Bharti Telecom
Bharti Airtel was trading higher in the early trade on Thursday on reports that Singapore Telecommunications (SingTel) will buy around 7.39 per cent stake in Bharti Telecom Ltd, holding company of Bharti Airtel. SingTel will invest around S$2.47 billion, or $1.8 billion, to increase its stake as part of its strategy to boost exposure to emerging markets. At 9.41 am, shares of Bharti Airtel were trading 0.71 per cent up at Rs 347.70. The scrip opened at Rs 349 and has touched a high and low of Rs 349.55 and Rs 346.50, respectively, in trade so far. Benchark BSE Sensex was trading 100 points up at 28,105.
According to Reuters, the transactions will be funded through internal cash, short-term debt and proceeds from a share placement of 386 million new Singtel shares to Temasek totalling S$1.605 billion.
In the past one year, shares of Bharti Airtel slid by 11.50 per cent to Rs 345.25 till August 17, 2016. The telecommunication major was trading at Rs 390.10 on the same day a year ago. Later, the scrip settled the day 2.07 per cent up at Rs 352.40.
For the quarter ended June 30, 2016, Bharti Airtel reported a consolidated net profit of Rs 1462 crore, down 30.82 per cent, against Rs 2113.20 crore in the corresponding quarter a year ago. Consolidated gross sales of the company jumped by 7.92 per cent year-on-year to Rs 25546.50 crore for the quarter under review. It had reported gross sales of Rs 23670.90 crore in the same quarter last year. On a standalone basis, net profit of Bharti Airtel slipped by 30.29 per cent year-on-year to Rs 1427.50 crore.