Business Today
Loading...

Bharti Airtel share gains over 2% as Carlyle to invest Rs 1,780 crore in telco's data centre arm

Share price of Bharti Airtel opened with a gain of 2.56% or Rs 14.35 higher at Rs 574 compared to the previous close of Rs 559.65 on BSE

twitter-logoBusinessToday.In | July 1, 2020 | Updated 10:45 IST
Bharti Airtel share gains over 2% as Carlyle to buy 25% in telco's data centre arm for Rs 1,780 crore
Bharti Airtel share is trading higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages

Bharti Airtel share price rose in an otherwise volatile market today after US-based private equity PE firm Carlyle Group that it would buy a 25% stake in Bharti Airtel's data centre business, Nxtra Data for $235 million (around Rs 1,780 crore).

Airtel will continue to hold the remaining 75% stake in the business. Share price of Bharti Airtel opened with a gain of 2.56% or Rs 14.35 higher at Rs 574 compared to the previous close of Rs 559.65 on BSE. The large cap stock has gained 61.35% in one year and gained 23.53% since the beginning of this year.

On Nifty, the stock gained 2.70% or Rs 15.15 to Rs 575 compared to the previous close of Rs 559.85. Bharti Airtel share is trading higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. Market cap of the firm rose to Rs 3.07 lakh crore.

According to analysts' recommendations tracked by Reuters, 24 of 26 brokerages rate the stock "buy" or 'outperform' and two "hold". The stock hit its all-time high of Rs 611.70 on May 20 this year.

Airtel sells 25% stake in data centre business to US-based Carlyle for Rs 1,780 crore

The large cap stock hit its 52-week low of Rs 321.60 on August 1 2019. PE firm Nxtra will use the proceeds from stake sale to build its infrastructure across the country. The deal will peg the company's post-money enterprise valuation at $1.2 billion, which is over Rs 9,084 crore.

Carlyle will invest in Nxtra through a company called Comfort Investments II, which is an affiliated entity of CAP V Mauritius Ltd, an investment fund managed and advised by affiliated firms of the Carlyle Group.

"Bharti Airtel and Comfort Investments II, an affiliated entity of CAP V Mauritius Limited, an investment fund managed and advised by affiliated entities of the Carlyle Group, today announced an agreement under which Comfort Investments II will invest $235 million in Nxtra Data Limited, a wholly-owned subsidiary of Airtel engaged in the data centre business," Airtel said in a statement.

Nxtra, which is headquartered in New Delhi, offers data centre services to leading Indian and global enterprises, start-ups, small and medium businesses and governments.

Share Market LIVE: Sensex rises 200 points, Nifty at 10,350; Axis Bank, BPCL, ITC top gainers

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close