Telecom major Bharti Airtel’s stock rallied nearly 4 per cent in morning trade on Friday, after it received the approval for the proposed merger with Telenor Communications from market regulator Securities Exchange Board of India (SEBI), and the two bourses of Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The Bharti Airtel stock at 10:50 am was trading 3.52 per cent up at Rs 379.80. India’s largest telecom services provider on Thursday evening released a statement to the bourses after markets had closed for the day. Airtel stated that the company and Telenor on Thursday have filed the joint company application before the New Delhi Bench of National Company Law Tribunal (NCLT) for the approval of the proposed scheme of merger.
The proposed acquisition will include transfer of all of Telenor India’s assets and customers, further augmenting Airtel’s overall customer base and network.
The merger, which is an inter-alia subject to other statutory approvals including from the Competition Commission of India, will enable Airtel to further bolster its strong spectrum foot-print in seven circles, with the addition of 43.4 MHz spectrum in the 1800 MHz band.
As part of the merger, Airtel will acquire Telenor India’s running operations in seven circles including Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam.