Bharti Airtel jumps up on Augere buy

Two days ago, on 25th August, Bharti Airtel had hit a new 52-week low at Rs.332.60 and today, it has bounced back with vigour. At one point, up 3% at Rs.349.85, it is now at Rs.346 levels, up around 2%. Volumes remain modest.

The bounce back in the stock price is on news it announced yesterday evening after market closure of acquiring 100% stake in Augere Wireless Broadband India. This company holds 20 MHz of BWA spectrum, which is 4G spectrum, in the telecom sector of Madhya Pradesh and Chhattisgarh. Thus taking over Augere, gives Bharti 4G market in nine circles across 300 cities and towns in India.

As per Augere’s website, the company has licenses to operate broadband wireless networks in Madhya Pradesh and Chhattisgarh in India but did not launch services, although it has tested a pilot wireless network based on LTE technology in Madhya Pradesh. Augere was established in 2007, going on to launch broadband services under the Qubee brand in Pakistan in July 2009 and in Oct 20029 in Bangladesh. The company is headed by former CEO of Orange, Sanjiv Ahuja.