Bharti Airtel share price gains 2% on receiving nod to raise FDI; appoints Pradipt Kapoor as CIO

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Bharti Airtel share price gained 2 percent intraday on January 11. The company in an exchange filing said that it has appointed Pradipt Kapoor as its Chief Information Officer (CIO).

The telecom major received almost all regulatory approvals required to raise foreign direct investment (FDI) in its downstream companies. According to sources, Bharti Airtel has got approval to raise FDI in its payments bank from the Reserve Bank of India (RBI) and the Foreign Investment Promotion Board (FIFB), the nodal agency.

According to RBI guidelines, the payments bank can raise FDI up to 74 percent.

The company has moved the Supreme Court of India seeking lowering of dues payable as per aggregated gross revenue (AGR) fees. The telco has cited “miscomputation of dues,” a reason for requesting the adjustment of dues, CNBC-TV reported.

Airtel is likely to cite that the DoT miscomputed the total dues payable. It is also expected to argue that the Rs 43,989 crore demand includes license fee dues and spectrum usage charges – but the issue before the SC was limited to license fee and not spectrum charge, hence its inclusion in the total is erroneous.

The stock was trading at Rs 553.70, up Rs 13.45, or 2.49 percent at 09:58 hours. It has touched an intraday high of Rs 554.40 and an intraday low of Rs 541.60.

Bharti Airtel continued adding subscribers to its network in the month of October beating Reliance Jio for the third straight month, taking its user base to 33.02 crore. The company had added over 36 lakh new users in October, according to the monthly subscription data by the Telecom Regulatory Authority of India (TRAI).

Domestic research firm Axis Securities has a buy rating on Bharti Airtel with a target of Rs 676 per share. This equates to an upside of 30 percent from current levels.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.