Mumbai: Shares of telecom giant Bharti Airtel on Wednesday contributed most to the market’s losses as it fell 3.4% to Rs413.40, its lowest close in two weeks, on growing uncertainty over its proposed tie-up with South Africa’s MTN.
The stock has declined 6.6% over the past two days. Bharti said on Tuesday its deal with MTN would comply with the laws in both countries and any required waivers would be sought when appropriate.
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“Some hiccups are still there. We need more clarity from the regulator over the open offer norms. We still need to read the fine print,” said K.K. Mital, head of portfolio management services at Globe Capital.
Shares of Bharti Airtel on a weak note on the Bombay Stock Exchange and soon lost further ground to witness an intra-day low of Rs420, a dip of nearly 2% from its previous closing price.
Marketmen said the counter witnessed heavy selling in a flat market as the revision in takeover norms are likely to have major ramification on the fate of the proposed Bharti-MTN deal, with both the parties still hammering out contentious issues including an open offer.
On the National Stock Exchange, the stock opened at Rs430 and then declined further to its day’s low of Rs421, a fall of 1.76% from its last close.
On the volume front, over 7.31 lakh shares exchanged hands on the BSE as well as on the NSE.
As per the revised takeover norms, an open offer is mandatory if 15% stake is bought in a company through securities including American Depository Receipts (ADRs) and Global Depository Receipts (GDRs).