Bharti Airtel hits highest level since October 2007 on 100% FDI nod

Shares of Bharti Airtel were up 2 per cent to Rs 524 on the BSE on Wednesday after the Department of Telecom (DoT) approved raising foreign direct investment (FDI) in the company to 100 per cent from 49 per cent allowed earlier.

The telecom services provider's stock was trading at its highest level since October 15, 2007. It touched its all-time high of Rs 527 on October 10, 2007.

In the past week, the stock has rallied 20 per cent amid expectations that the telecom company is poised for strong market share gain. In comparison, the S&P BSE Sensex was down 1 per cent during the same period.

"Bharti Airtel has received the approval from the Department of Telecommunications (DoT) vide its letter dated January 20, 2020, for increasing the limit of foreign investment up to 100 per cent of the paid-up capital of the company," the filing said.

It may also be noted that subject to applicable laws, the aforesaid approval read together with the Reserve Bank of India (RBI) approval dated July 03, 2014 granted to the Company allows the FPls/Flls to invest up to 74 per cent of the paid up capital of the Company, it said.

Last week, Bharti Airtel successfully raised $3 billion -- $ 2 billion via qualified institutional placement (QIP) and $1 billion through foreign currency convertible bonds (FCCBs).

The company said the net proceeds of the fund will primarily be used to augment the company's long-term resources and strengthen the balance sheet, servicing and for repayment of short term and long term debts capital expenditures, statutory dues and long term working capital requirements.

At 09:27 am, the stock had erased some its early morning gains and was trading 0.55 per cent higher at Rs 514 against 0.41 per cent rise in the Sensex. A combined 4.91 million equity shares have changed hands on the counter on the NSE and BSE so far.

Bombay Stock Exchange - BSE