Shares of Bharti Infratel gained more than 4 per cent in early morning trade on Wednesday after the company announced a tower-sharing agreement with Reliance Jio Infocomm.

Bharti Infratel on Tuesday announced that it had signed a Master Services Agreement with Reliance's telecommunications subsidiary for sharing of telecom tower infrastructure. The announcement was made after market hours yesterday.

Under the Master Services Agreement, Reliance Jio will be able to utilize Bharti Infratel's telecom tower infrastructure to launch its telecom services across the nation. The two companies said in a combined statement that the pricing would be at 'arm's length,' based on current market rates.

Bharti Infratel CEO D S Rawat said that the agreement would provide significant synergies of faster access to telecom market and lower operational costs. He added that the agreement would also benefit customers with reduced rentals and energy charges on account of additional sharing.

Speaking on the topic, he said, "We are delighted with this agreement to offer our world-class telecom infrastructure to Reliance Jio. Our vast footprint and high network uptime levels will offer significant synergies of faster access to market and lower operational costs."

Sanjay Mashruwala, Managing Director of Reliance Jio, said the agreement would enable them to preserve capital as well as the environment by allowing them to avoid duplication of tower infrastructure, wherever possible.

In response to the announcement, share of Bharti Infratel jumped 4 per cent to Rs 199.05 apiece at 9:17 IST on the Bombay Stock Exchange (BSE) today. At one point so far during the day, the stock hit a high of Rs 205 a share, outshining the S&P BSE Sensex's gain of 0.32 per cent to 21,278.47 points.