01-Dec-2023
2 mins read
Bharti Airtel’s shares hit a historic high of Rs 1,022.55 on the National Stock Exchange (NSE) on Friday, December 1. This climb in share value followed Bharti Telecom (BTL), the promoter company of Airtel, acquiring an extra 1.35% share in the telecom leader.
The transaction was completed through a block deal with Indian Continent Investment Ltd (ICIL), involving a significant Rs 8,301.73 crore.
Details of the Block Deal
The block deal resulted in BTL acquiring 1.35% of Bharti Airtel’s shares from ICIL, as detailed in a stock exchange filing by BTL. Post-deal, ICIL’s ownership in Airtel now stands at 4.56%, reduced from its previous holding of 5.93% as reported in the September quarter. Bharti Enterprises, led by Sunil Mittal, holds a majority 50.56% stake in BTL, with Singapore Telecommunications (Singtel) owning the remaining 49.44%.
Six Months of Consistent Growth
The shares of Bharti Airtel have been consistently climbing, witnessing growth exceeding 11% in the last six months. This past Wednesday, the company reached a notable landmark as its stock price crossed the ₹1,000 barrier for the initial time, underlining its strong and steady performance in the marketplace.
Impressive Yearly Returns
Bharti Airtel has shown remarkable growth in recent years. In 2019, the company yielded an impressive return of 59%, followed by consistent gains in subsequent years – 11.83% in 2020, 37% in 2021, and 18% in 2022. This year, the company has continued its upward trend, posting a notable return of 23.56%, outperforming the benchmark Nifty 50’s gain of 10.62%.
Q2 FY24 Performance
In the wake of an ascending trend in its share values, Bharti Airtel noted a net profit of Rs 1,341 crore in the quarter concluding in September 2023, a decline of 37% from Rs 2,145.2 crore in the corresponding quarter of the previous year. This uplift in Bharti Airtel’s stock prices, especially after a stake increment by its promoting entity, showcases considerable market faith in the firm’s present operational status and its prospective future advancement. Despite this quarter’s reduced earnings, Bharti Airtel’s ongoing pattern of growth and robust historical record underscore its adaptability and steadfastness in the dynamic, competitive realm of telecommunications.