The share price of Bharti Airtel soared 6 per cent in early trade on Wednesday after the company received the approvals for 100 percent foreign direct investment (FDI) in its relevant downstream companies.
Shares of the telecom major were trading at Rs 591.50, up by 25.75 points or 4.55 percent at the National Stock Exchange (NSE) at 10:15 am. The bullish run of Airtel can lead it to touch its 52-week high of Rs 612 which it had hit in May 2020 as per the National Stock Exchange.
On the BSE, the company’s 52-week high is of Rs 611.7052 while 52 week low is of Rs 381.05.
Later on Tuesday, the company in a regulatory filing said that it is initiating the process to revise the foreign investment limit to 100 per cent with immediate effect.
“In compliance with the FDI approval dated January 20, 2020, granted to the company by the Department of Telecommunications (DoT), the company has received approvals for its relevant downstream investments. Accordingly, the company is initiating the process to revise its foreign investment limit, as notified to its depositors, to 100% with immediate effect,” the company said in a release.
On Tuesday, shares of Bharti Airtel closed at Rs 565.75 higher by 18.65 points or 3.41 percent on the NSE. The company currently is with the market cap of 3.23 trillion.
The other reasons behind the rise in the share priceof Bharti Airtel is the higher growth potential of the company. As per the data released by the Telecom Regulatory Authority of India(TRAI), the company had the highest number of users in September 2020. The data was released in the month of December. Noticing the increase in the number of users it is also expected that in Q3 results, the company may book good profits and revenues.
Source: News18