The Bharti Airtel stock rose in early trade after the telco said it appointed global banks for an intended initial public offer (IPO) on an international exchange. The stock was the top Sensex gainer today. The stock rose up to 3.14% to 338.25 compared to its previous close of 327.95 on the BSE. The large cap stock has lost 32.80% during the last one year and fallen 37% since the beginning of this year. On Nifty, the stock rose 2.73% to 336.80.
23 of 30 brokerages rate the stock "buy" or 'outperform', five "hold" and two "underperform" , according to analysts' recommendations tracked by Reuters.
The stock is trading above its 50-day moving average of 301.88 and below its 200-day moving average of 351.95.
The banks appointed are JP Morgan, Citigroup, BofA Merrill Lynch, Absa Group Limited, Barclays Bank PLC, BNP Paribas, Goldman Sachs International and Standard Bank Group.
The move follows the recent subscription of shares in Airtel Africa by six leading global investors comprising of Warburg Pincus, Temasek, Singtel, SoftBank Group International and others for an aggregate consideration of $1.25 billion. Earlier this month, Airtel Africa also announced its newly constituted Board of Directors that includes representatives from Bharti Airtel and the investors.
On Thursday, the Bharti Airtel stock closed lower after Indian Railways chose its rival Reliance Jio Infocomm as new service provider to make savings on phone bills. The stock fell up to 3.09% to 321.50 points in early trade compared to its previous close of 331.75 on the BSE. It was the top Sensex loser in trade.
The stock closed 1.15% lower at 327.95 level on the BSE.
Bharti Airtel reported a 3.6 per cent decline in its India revenues on year-on-year while the Africa revenues rose 10.8 per cent. The revenue from Africa business rose to Rs 5,647.2 crore during September quarter from Rs 5,203 crore in the same period of the previous year.