Shares of the country's largest telecom operator, Bharti airtel, surged by as much as 2% in morning trade on the bourses on Friday after the company announced that it has bagged 2G and 3G licences in Rwanda.
Shares of the company opened on a strong note at Rs 404.45 on the Bombay Stock Exchange and then rallied further to an early high of Rs 407 apiece, a jump of nearly 2% vis-a-vis their previous closing price.
Similar movement was witnessed on the National Stock Exchange as the stock, after opening on a bullish note, gained as much as 2% to Rs 407.
However, the stock saw some of the initial gains pared in later trade and was being quoted at Rs 406.40, up 1.80%, on the BSE and at Rs 405.80, up 1.58%, on the NSE at 1035 hours.
Bharti airtel on Thursday announced that it will launch 2G and 3G mobile services in Rwanda, for which it has earmarked an investment of USD 100 million over the next three years.
As per the announcement that came after market hours on Friday, Bharti airtel has been awarded licences to operate mobile services by the Rwanda government.
Rwanda is amongst the fastest growing telecom markets in Africa. According to the National Statistics Institute of Rwanda, mobile penetration in the country stood at 38.4% as of July, 2011, the statement said.
"Rwanda is a key telecom market with immense growth potential and will strengthen Bharti airtel's footprint in East Africa," Bharti airtel Chairman and Managing Director Sunil Mittal had said yesterday.
Airtel already has a presence in 16 African countries, including Burkina Faso, Chad, the Democratic Republic of Congo, Republic of the Congo, Gabon, Ghana, Kenya, Malawi, Madagascar, Niger, Nigeria, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia.