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Bharti Airtel stock closes 10.79% higher on $1.25 billion infusion into Africa business

By FnF Correspondent | PUBLISHED: 26, Oct 2018, 10:42 am IST | UPDATED: 26, Oct 2018, 10:42 am IST

Bharti Airtel stock closes 10.79% higher on $1.25 billion infusion into Africa business Desk FnF:The Bharti Airtel stock rose in afternoon trade today amid a report that  Airtel 's Africa business would see an infusion of $1.25 billion  by six global investors. At 2:30 pm, the  Bharti Airtel stock  was trading 5.51% or 15 points higher at 301.65 level on the BSE.

The stock which closed at 285.90 yesterday hit an intra day high of 328.75. It opened at 287.50 level on the BSE. The stock closed 10.79% or 30.85 points higher at 316.75 on the BSE. The  large cap stock has gained after four days of consecutive fall.

 

The stock has lost 40.10% during the last one year and is down 43.24% since the beginning of this year.

23 of 31 brokerages rate the stock "buy" or 'outperform', five "hold" and three "underperform" or "sell", according to analysts' recommendations tracked by Reuters.

Prominent investors in Airtel include Global Warburg Pincus, Temasek, Singtel and SoftBank Group International.

The investment will be used to reduce Airtel Africa's existing debt of approximately $5 billion and for growth of its African operations, the Bharti Airtel unit listed in UK said.

Bharti Airtel is a global telecommunications company with operations in 17 countries across Asia and Africa. In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high-speed home broadband, DTH and enterprise services, including national and international long-distance services to carriers.

In the rest of the geographies, it offers 2G, 3G and 4G wireless services and mobile commerce.

Airtel Africa has seen a turnaround of its business in recent years. The Africa business unit in the last few quarters mitigated the impact of turbulent tariff war going on in India on consolidated financial performance of Bharti Airtel.

"This primary equity issuance clearly underlines the confidence of leading global investors in Airtel Africa's successful business strategy and its potential to sustain growth and profitability," Raghunath Mandava, MD and CEO, Africa, Bharti Airtel, said.

Airtel Africa subsequently intends an initial public offering and use the proceeds primarily for further reduction of debt, the statement said.

"The transaction will help us further deleverage our balance sheet and boost our capacity to upgrade networks, expand coverage in different markets and achieve rapid growth of Airtel Money across our operations," Mandava said.

The present transaction will not involve any sale of shares by existing shareholders, the company said.

 

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