Bharti Infratel's share price gained over 13 per cent on Thursday, surging 16 per cent in the last two days, after the company received a go-ahead from the board for Indus Tower merger.
Bharti Infratel informed the exchanges that its board of directors discussed, in a meeting held on August 31, the scheme of arrangement with Indus Towers and related agreements, and has decided to proceed with the merger.
"After deliberations the Board has authorised the chairman to proceed with the scheme and comply with other procedural requirements to complete the merger - including approaching the National Companies Law Tribunal (NCLT) to make the scheme effective subject to certain procedural condition precedents," the company said in the exchange filing.
Following this, Bharti Infratel's stock price climbed 13.21 per cent to the intraday high of Rs 222 on BSE as against the last closing value of 223.85 on BSE. On NSE, Bharti Infratel stock hit intraday high of Rs 196.90. The stock opened at Rs 199 and also touched an intraday low of Rs 197 today.
Bharti Infratel stock price has hit a 52-week low of Rs 121 touched on March 19, 2020, and a 52-week high of Rs 295.75, registered on December 2 last year.
Infratel's stock price trades higher than 5, 20, 50 and 100-day but lower than 200-day moving averages. The highly volatile stock has risen 7 per cent in one week and 12.9 per cent in one month. The market capitalisation of the firm stood at Rs 39,535 crore.
The shares issued to Vodafone would be equivalent to 28.2%, while Bharti Airtel's shareholding in Bharti Infratel would be diluted from 53.5% to 36.7%. Bharti Airtel and Vodafone will jointly control the combined company.
"This is a basic cash consideration chosen by Vodafone Idea for its 11.15% shareholding in the Indus which will be based on 60 days VWAP as at closing date (and agreed closing adjustments) for approximately Rs 4,000 crore," the statement also read.
"These security arrangements remain subject to all applicable regulatory approvals and any approval of Vodafone Plc's lenders and will provide the merged company a payment cover of over one year for operational payments due from Vodafone Idea," it added.
Bharti Infratel, earlier in April had announced the extension of its deadline for completion of a merger with Indus Towers to June 24,2020.
Bharti Infratel shares closed 11.55 per cent higher at Rs 218.75 on BSE today.