Bharti Airtel’s Shares Hit Record High After Stake Acquisition

Bharti Airtel's Shares Hit Record High After Stake Acquisition

VoM News Desk | December 1, 2023 | 11:19 PM IST | Breaking News | Follow on Google News

Bharti Airtel’s Shares Hit Record High After Stake Acquisition

Bharti Airtel’s Shares Hit Record High After Stake Acquisition

Bharti Airtel, one of the leading telecommunications companies, witnessed its share prices reach an all-time high on Friday, December 1. The shares soared to ₹1,022.55 on the National Stock Exchange (NSE) following a significant internal stake acquisition by its promoter company.

Promoter Group Transaction Elevates Share Value

The surge in Airtel’s share value was triggered by Bharti Airtel Ltd (BTL), a promoter company, acquiring an additional 1.35% stake in Bharti Airtel. This transaction, amounting to ₹8,301.73 crore, was executed through a block deal from another promoter group entity, Indian Continent Investment Ltd (ICIL). Post this deal, ICIL’s stake in Airtel decreased to 4.56%, as detailed in the stock exchange filing by BTL.

Robust Growth and Strong Market Performance

Bharti Airtel has demonstrated a strong growth trajectory over the past few years. The company’s shares have gained over 11% in the last six months, marking a notable upward trend. The stock first crossed the significant ₹1,000 threshold on Wednesday, reflecting its steady and resilient growth.

In 2019, Bharti Airtel’s shares yielded an impressive 59% return. This robust performance continued in subsequent years, with the stock gaining 11.83% in 2020, 37% in 2021, and 18% in 2022. In the current year, the telecom giant has already achieved a remarkable 23.56% return, outperforming the benchmark Nifty 50’s gain of 10.62% in the same period.

Financial Highlights and Future Prospects

Despite the positive momentum in its share prices, Bharti Airtel reported a 37% decrease in net profit for the quarter ending September 2023 (Q2 FY24), compared to the same period last year. However, the company’s strong market presence and strategic moves, like the recent stake acquisition, suggest a positive outlook for its future performance in the highly competitive telecom sector.

VoM News Desk

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