Bharti Airtel scrip slipped on the bourses today, eroding its market capitalisation by Rs 994 crore, after the telecom major said it would buy Loop Mobile which operates in Mumbai.
The share price slumped as much as 1.86 per cent to touch intra-day low of Rs 299.40 on the BSE. It gained some ground later and closed at Rs 302.20, down 0.95 per cent.
Accordingly the market capitalisation of the company declined by Rs 994 crore to Rs 1,20,801 crore.
Under the agreement, Loop Mobile's 3 million subscribers in Mumbai will join Airtel's over 4 million subscribers, making it the largest network in the metro, according to a statement by Bharti Airtel.
The agreement would ensure continuity of services to Loop Mobile's subscribers, whose licence is expiring in November, with option to access Airtel's services.