Bharti Infratel jumped 12.80% to Rs 209.35 after the company said that its proposed merger with Indus Towers has been completed.
In a BSE filing made after market hours yesterday, the company said that its name will be changed to "Indus Towers".
Bimal Dayal, erstwhile managing director and chief executive officer of Indus Towers, has been appointed as the CEO of the merged entity, the company added.
On 1 September 2020, Vodafone Idea (VIL), Vodafone Group Plc (Vodafone), Bharti Airtel, Indus Towers and Bharti Infratel agreed to proceed with completion of the merger of Indus and Infratel.
Bharti Infratel and Vodafone Plc. held 42% stake each in Indus Towers while Vodafone Idea held 11.15% stake and Providence owned the remaining 4.85% stake.
VIL received Rs 3,760.10 crore cash for its 11.15% stake sale in Indus Towers. Upon implementation of the scheme, the aggregate shareholding of Bharti Airtel in the combined entity reduced from 53.51% to 36.73%.
In a regulatory filing made after closing hours on Thursday, Bharti Infratel said that its board had allotted 757,821,804 equity shares to the Vodafone group and 87,506,900 equity shares to PS Asia Holding Investments (Mauritius) (Providence) (together 'eligible shareholders' of Indus as on the record date) aggregating to 28.12% and 3.25%, respectively, in the post-issue share capital of the company.
Consequently, the Vodafone group will hold 28.12% stake while Bharti Airtel will hold 36.73% stake in the combined entity.
Bharti Infratel is India's leading provider passive telecom infrastructure and it deploys, owns and manages telecom towers and communication structures, for various mobile operators. The company's consolidated portfolio of over 95,000 telecom towers, which includes over 43,000 of its own towers and the balance from its 42% equity interest in Indus Towers, makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles.
On a consolidated basis, the companny's net profit dropped 24% to Rs 733 crore on 5.9% increase in net sales to Rs 1,766.40 crore in Q2 September 2020 over Q2 September 2019.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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