Videocon Industries, a large diversified Indian company headquartered in Gurgaon, Haryana witnessed a sharp rise in share price after it enetered into a definitive agreement with Bharti Airtel to sell the rights to use 2 x 5 MHz spectrum in the 1800 MHz band in 6 circles for a consideration of Rs 44.28 billion.
Videocon will sell the spectrums in Bihar, Haryana, Madhya Pradesh, UP (East), UP (West) and Gujarat circles.
However, the closing of the transaction is subject to satisfaction of the standard conditions including conditions stated in the Spectrum Trading Guidelines.
Through the acquistion of these spectrums, the Bharti Airtel will be able to provide 4G services in these 6 circles. Presently, the company provides 4G services in 15 circles.
Earlier, on Wednesday Idea Cellular had terminated its agreement with Videocon relating to acquisition of spectrum in two circles viz Gujrat and Uttar Pradesh (West) for a consideration of Rs 33.10 billion.
Shares of Videocon Industries are trading at Rs 116.55, up Rs 7.15, or 6.54% at the Bombay Stock Exchange (BSE) on Thursday at 1:26 p.m.
The scrip has touched an intra-day high of Rs 128.00 and low of Rs 109.45. The total volume of shares traded at the BSE is 849,404.