Shares of Bharti Airtel rose over 3 per cent in intra-day trade on Thursday after the telecom major completed the acquisition of Tikona Digital Networks Pvt Ltd.
Sunil Mittal-led mobile phone operator in a filing to the exchange said that it has completed the merger of Bharti Digital Networks Pvt Ltd, formerly known as Tikona Digital Networks Pvt Ltd, with itself.
"The amalgamation of Bharti Digital Networks Private Limited (formerly known as Tikona Digital Networks Private Limited) with Bharti Airtel Limited has been completed today upon the filing of Certified True Copy of the Order of the National Company Law Tribunal (NCLT), New Delhi with the Registrar of Companies (RoC)," Bharti Airtel said in a filing to the Bombay Stock Exchange on Wednesday.
As on March 2017, Bharti Airtel had said that it would acquire the 4G business of Tikona Networks, including broadband spectrum and 350 sites across five circles, for about Rs 1,600 crore.
Boosted by the development, Bharti Airtel share price gained as much as 3.20 per cent and touched an intra-day high of Rs 349.55 against previous close level of Rs 338.70 on the BSE. Paring some of gains, the stock closed trade at Rs 346.60, up 2.33 per cent.
On the National Stock Exchange, Bharti Airtel shares ended at Rs 345.75 apiece, up 2.05 per cent. The scrip opened tad higher at Rs 340 against previous close of Rs 338.80 and touched an intra-day high of Rs 349.55.
In a separate development, the New Delhi-headquartered firm said that its rights issue of over 113 crore shares, which was opened from May 3 to May 17, was oversubscribed, with bids received for over 119 crore stocks.
"The total number of applications received were 27,335 for 1,196,630,354 equity shares which is 105.561 per cent of the issue size in terms of number of equity shares applied for," Bharti Airtel said in the exchange filing.
In one of the largest fundraising exercise, the telco floated the rights issue of 113 crore equity shares of face value of Rs 5 each at a cash price of Rs 220 per share to raise up to Rs 24,939 crore. The company intends to use the proceeds to reduce the company's debt and lower borrowing costs.
Edited by Chitranjan Kumar