Shares of Bharti Airtel Limited surged 3 per cent to hit an intraday high of Rs 720.5 on Thursday after the company announced the formation of a joint venture.
Hughes Communications India Pvt Limited, (HCIPL), a majority-owned subsidiary of Hughes Network Systems, LLC (HUGHES) and Bharti Airtel Limited have announced the formation of a joint venture to provide satellite broadband services in India, the companies said on Wednesday.
The stock ended 1.46 per cent higher at Rs 710.25 against the previous close of Rs 700.05 on BSE. The market cap of the firm rose to Rs 3,90,071.24 crore.
The shares of telecom major are trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The new entity combines the VSAT (very small aperture terminal) businesses of Hughes and Airtel and will offer "flexible and scalable enterprise networking solutions using satellite connectivity for primary transport, back, and hybrid implementation."
The agreement, announced in May 2019, has received all statutory approvals, including those from the National Company Law Tribunal (NCLT) and Department of Telecom (Government of India) and the joint venture has been formed.
Ajay Chitkara, director and chief executive officer, Airtel Business, said, "With the combined capabilities of Airtel and Hughes, customers will get access to next-generation satellite connectivity backed by proven enterprise-grade security and service support."
"We are pleased to commence this joint venture, further delivering on our commitment to serving the growing demand for always-on, always-available network connectivity for enterprise and government customers," said Partho Banerjee, president, and managing director, HCIPL.
The partnership will bring synergies to the forefront - including multi-orbit solutions - for the benefit of customers across the length and breadth of India, he added.
Recently, Airtel announced that it will build a 5G-based remote working technology with IT major Tata Consultancy Services. TCS during the trials has successfully tested two use cases of its Neural Manufacturing solutions on Airtel's 5G testbed in Manesar.
The company posted 300 per cent quarter-on-quarter (QoQ) growth in net profit for the quarter ended September 30. The bottom line of the telecom major jumped to Rs 1,134 crore from 283.50 crore in the preceding quarter ended June 30. It had reported a loss of Rs 763.20 crore in the same quarter last year.
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