Bharti Airtel share rose over 2% today after the telco said its board was slated to meet on February 17 to discuss "future strategic plans and reorganisation of shareholding framework" of its subsidiaries.
Share of Bharti Airtel climbed 2.8% to Rs 603 against previous close of Rs 586.55 on BSE. Bharti Airtel share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The large cap share has gained 5.77% in one year and risen 17.36% since the beginning of this year.
Market cap of the telco rose to Rs 3.26 lakh crore
The strategic plan may result in consolidation or acquisition of shares of its subsidiary companies, the payment for which may be made through the issuance of equity shares on a preferential basis and/or cash, Airtel further stated.
"We wish to inform you that a meeting of Board of Directors of the Company is scheduled to be held on Wednesday, February 17, 2021, to discuss the future strategic plans and the reorganisation of shareholding framework of subsidiary company (ies), which may result in consolidation/acquisition of shares of subsidiary company (ies) that concentrate of which may be discharged through issuance of equity shares of the Company (ies) on a preference basis and/cash preferential basis", the telco said in a statement on BSE.
Airtel's board had on February 3 approved raising Rs 7,500 crore via debt instruments such as bonds and debentures in one or more instalments.
In third quarter of the current fiscal, the telco reported a consolidated net profit of Rs 853.6 crore against a net loss of Rs 1,035.3 crore in the year-ago period. The company had posted a net loss of Rs 763.2 crore in the preceding July-September quarter.
On February 4, the stock hit all time high of Rs 623 rising 2.33% on BSE after the Q3 earnings were announced.
Its mobile ARPU (average revenue per user) rose to Rs 166 in October-December from Rs 135 in the year-ago quarter as it focused on acquiring quality customers as well as secular upgrading of customers to data, Airtel said.
Market capitalisation of the firm rose to Rs 3,27,442.55 crore.
Airtel posted a 24% YoY increase in consolidated revenues to Rs 26,518 crore for the quarter ended on 31 December.
The revenue of India mobile business rose 32.4% YoY to Rs 14,778.8 crore, while Airtel Business revenue jumped 9.2% to Rs 3,621.5 crore.