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Bharti Airtel gains on securing credit for overseas acquisition

Capital Market / 15:29 , Mar 22, 2010

Bharti Airtel gained 1.07% to Rs 315.20 at 15:26 IST on BSE, after the company finalised $8.3 billion of funding for its proposed acquisition of the African assets of Kuwait's Zain Telecom.

The company made this announcement during trading hours today, 22 March 2010.

Meanwhile, the BSE Sensex was down 176.61 points, or 1% to 17,401.62.

On BSE, 10.42 lakh shares were traded in the counter as against an average daily volume of 11.05 lakh shares in the past one quarter.

The stock hit a high of Rs 319.40 and a low of Rs 306.25 so far during the day. The stock had hit a 52-week high of Rs 495 on 19 May 2009 and a 52-week low of Rs 229.50 on 27 November 2009.

The large-cap stock had outperformed the market over the past one month till 19 March 2010, gaining 12.08% as compared to the Sensex's 8.56% rise. It had underperformed the market in the past one quarter, falling 1.66% as compared to the Sensex's return of 5.13%.

The company's equity capital is Rs 1898.72 crore. Face value per share is Rs 5.

The current price of Rs 315.20 discounts the company's Q3 December 2009 annualized EPS of Rs 24.36, by a PE multiple of 12.94.

As per Bharti Airtel's statement to the BSE, the financing was oversubscribed, with major international banks committing to underwrite the total amount. Of the funds, $7.5 billion are in dollars and $1 billion in rupees. However, Bharti Airtel did not disclose the rate of interest it was paying to lenders for the loans.

India's Bharti Airtel and Kuwait's Zain Telecom are in exclusive talks till 25 March 2010. This is the third attempt by Bharti Airtel to acquire assets in the African continent. Last year, the company had failed to acquire South Africa's MTN Group.

Bharti Airtel added 2.9 million mobile users in February 2010 against 2.85 million in January 2010 taking its total mobile user base to 124.60 million.

Bharti Airtel's net profit rose 14.6% to Rs 2312.10 crore on 0.8% fall in sales to Rs 8755.45 crore in Q3 December 2009 over Q3 December 2008.

Bharti Airtel provides mobile telecommunication services in India. It also provides fixed-line, VSAT, Internet and broadband services.

 



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