New Delhi, Sep 1 (PTI) Shares of Bharti Infratel on Tuesday erased all its early gains and closed nearly 5 per cent lower on profit-taking.
In morning trade, it had jumped over 5 per cent after the company said its board has decided to proceed with the scheme for the merger with Indus Towers.
The stock, which gained 4.91 per cent to Rs 208 on the BSE during the day, later surrendered the gains and closed 4.82 per cent lower at Rs 188.70.
On the NSE, it declined 4.91 per cent to close at Rs 188.80 after rising 5.16 per cent to Rs 208.80 during the day.
Bharti Infratel on Tuesday said its board has decided to proceed with the scheme for the merger with Indus Towers, and that the cash consideration chosen by Vodafone Idea for its 11.15 per cent stake in Indus Towers is expected to be about Rs 4,000 crore.
The company said its board, in a meeting held on August 31, 2020, took note of the status of the scheme of arrangement between Indus Towers and Bharti Infratel and the related agreements.
“After deliberations, the board has decided to authorise the chairman to proceed with the scheme and to comply with other procedural requirements for completion of the merger including approaching NCLT (National Company Law Tribunal) to make the scheme effective subject to certain procedural condition precedents,” it said in a regulatory filing.
Bharti Airtel will hold 36.7 per cent stake in the merged entity, Vodafone UK (28.2 per cent), Providence Equity Partners (3.2 per cent) with public holding (31.6 per cent), according to a source.