New Delhi, Oct 13 (PTI) Shares of Bharti Airtel todayclosed with up to 8 per cent gains as the company announcedacquisition of Tata group's loss-making mobile telephonybusiness, almost for free, boosting its spectrum holding anduser base.
The stock soared 7.89 per cent to settle at Rs 431.60 onBSE. During the day, it zoomed 8.98 per cent to Rs 436.
At NSE, shares of the company surged 7.65 per cent to endat Rs 430.90.
Strong gains in the stock price boosted the company'smarket valuation by Rs 12,612.79 crore to Rs 1,72,527.79crore.
The stock was the biggest gainer among blue-chips on boththe key indices during the day.
Shares of Tata Teleservices Maharashtra (TTML) advancedby 9.95 per cent to Rs 4.86 - its highest trading permissiblelimit for the day - on BSE.
At NSE, it climbed 9 per cent to Rs 4.80.
Financial services firm UBS said near-term earningsdownside notwithstanding, it saw Bharti Airtel as a key longterm winner given its scale, spectrum footprint and networkheadstart.
Bharti Airtel is set to take over Tata group's money-losing mobile business from November 1, saving the Tatas fromthe prospect of having to shut down the struggling unit.
Airtel, for whom it will be the seventh acquisition infive years, will acquire 4 crore customers of TataTeleservices Ltd (TTSL) and Tata Teleservices MaharashtraLtd (TTML) in 19 telecom circles or zones on "a debt-free,cash-free basis", the two groups announced in separate butidentical press statements yesterday.
While all of the Rs 31,000 crore debt will remain withthe Tatas, Airtel will assume payment of close to 20 per centof the Rs 9,000-10,000 crore deferred payments for thespectrum to the government. The Tatas will pay the rest. PTISUMANU.
This is unedited, unformatted feed from the Press Trust of India wire.