Bharti Airtel shares rise nearly 3% on buyback offer

Bharti Airtel shares rose over 3% on Monday in the early hours of trade. At 1033 hours the shares on BSE were trading up 2.32% or Rs 8.20 at Rs 361.30 per piece. While at 1035 hours on NSE the stock was trading up at 2.31% or Rs 8.15 at Rs 361.25 per piece. 

The company, on Saturday, had said that it is likely to being a share buyback process and will consider the proposal in its board meeting on April 27. It, however, did not specify the number of shares it mulls to buy back.

"The board of directors of the company will consider to recommend final dividend for the financial year ended March 31, 2016 or buy back of equity shares of the company or a combination thereof, in its meeting scheduled to be held on April 27, 2016," the company said in a filing to BSE.

As of the quarter ended March 31, public shareholding of the company stood at 33.21%, whereas the promoters held 66.74%.

The country's top mobile phone operator is also looking to sell 5% stake in its tower unit Bharti Infratel through an open market trade deal to raise about Rs 3,500 crore to Rs 4,000 crore, sources said.

The proceeds of the sale are likely to be used to cut debt, sources added.

They, however, did not give any timeline for the stake sale.

Airtel's net debt stood at Rs 78,816 crore at the end of December 2015.

(With inputs from PTI)