Shares of Bharti Airtel today closed with up to 8 percent gains as the company announced acquisition of Tata group’s loss-making mobile telephony business, almost for free, boosting its spectrum holding and user base. The stock soared 7.89 percent to settle at Rs 431.60 on BSE. During the day, it zoomed 8.98 percent to Rs 436. At NSE, shares of the company surged 7.65 percent to end at Rs 430.90. Strong gains in the stock price boosted the company’s market valuation by Rs 12,612.79 crore to Rs 1,72,527.79 crore. Also Read - Airtel Rs 79 plan vs JioPhone Rs 75 prepaid plan compared: Which offers better value?
The stock was the biggest gainer among blue-chips on both the key indices during the day. Shares of Tata Teleservices Maharashtra (TTML) advanced by 9.95 percent to Rs 4.86 – its highest trading permissible limit for the day – on BSE. At NSE, it climbed 9 percent to Rs 4.80. Financial services firm UBS said near-term earnings downside notwithstanding, it saw Bharti Airtel as a key long term winner given its scale, spectrum footprint and network headstart. Bharti Airtel is set to take over Tata group’s money- losing mobile business from November 1, saving the Tatas from the prospect of having to shut down the struggling unit. Also Read - Airtel Rs 79 vs Vodafone-Idea (Vi) Rs 79 prepaid plans compared: Data, calls, and other benefits
Airtel, for whom it will be the seventh acquisition in five years, will acquire 4 crore customers of Tata Teleservices Ltd (TTSL) and Tata Teleservices Maharashtra Ltd (TTML) in 19 telecom circles or zones on “a debt-free, cash-free basis”, the two groups announced in separate but identical press statements yesterday. While all of the Rs 31,000 crore debt will remain with the Tatas, Airtel will assume payment of close to 20 percent of the Rs 9,000-10,000 crore deferred payments for the spectrum to the government. The Tatas will pay the rest. Also Read - Airtel introduces new Rs 79 prepaid plan in place of Rs 49 pack: Here are the benefits