Bharti Airtel shares surged on Wednesday morning as Bharti Hexacom, a telecom major, said that Securities and Exchange Board of India (SEBI) has approved of its draft Initial Public Offer.
As part of an internal reorganization step, the Airtel will acquire 95 percent of the stockholding of Airtel Limited, a step-down wholly-owned subsidiary company, from another wholly-owned subsidiary company.
It will also transfer its whole stake in its subsidiary Nxtra Data to Airtel Limited. The offer for sale of Bharti Hexacom will comprise of 10 crore equity shares, all of which will be disposed of by the sole public stockholder Telecommunications Consultants India.
The selling stockholder will obtain the total of the offer proceeds less the expenditure of the offer, as there is no fresh issue part of the offer. The draft red herring prospectus (DRHP) displays the fact that promoter Bharti Airtel currently owns 70 percent stockholding , corresponding to 35 crore equity shares.
CFR submitted the DRHP with the market regulator on January 19th. The remaining 30 , or approximately 15 crore equity shares, are held by non-promoter Telecommunications Consultants India.
SEBI’s approval of the issue has triggered a fresh wave of optimism among investors, resulting in a spike in Bharti Airtel’s share price.
Shares of the company, which were up 1.51% at ₹ 1,233.90, traded at ₹1,233.90 on the NSE at 10:40 a.m.
