Bharti Airtel Block Deals: Promoter Indian Continent Investment Offloads ₹8,475 Crore Stake

A significant block deal involving 5.1 crore shares of leading telecom operator Bharti Airtel, valued at ₹8,475 crore, took place on the stock exchanges on February 18. Indian Continent Investment, a promoter entity, was the seller in this transaction. The sale amounted to a 0.9% stake in the company.

Stake Sale and Acquisition Details

Bharti Airtel later confirmed that Indian Continent Investment offloaded a 0.84% stake in the company, out of which 1.2 crore shares were acquired by Bharti Telecom, another promoter of the telecom giant. The company further stated that the allocation was made exclusively to key marquee long-only investors, both global and domestic.

This strategic transaction aligns with Bharti Telecom’s broader objective of consolidating its holding in Bharti Airtel. Over the past year, the company has been gradually increasing its stake while maintaining a cautious approach to financial leverage.

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Market Impact and Stock Performance

At 09:26 AM IST, the Bharti Airtel Share Price were trading at ₹1,671.50 on the NSE. The market reaction reflected investor sentiment towards the deal, with fluctuations expected as trading activity adjusted to the development. Following the block deal, Bharti Airtel’s stock showed volatility.

Lock-in Period and Special Trading Conditions

A report by CNBC-TV18 disclosed that this block deal includes a 180-day lock-in period for the seller, its agents, nominees, and subsidiaries. This means that the seller and associated entities will not be able to sell additional shares during this period. The report further emphasized that all orders placed for these shares would be executed solely for this transaction and would not be considered regular market orders.

Bharti Telecom’s Increasing Stake

This block deal follows Bharti Telecom’s acquisition of an additional 1.2% stake in Bharti Airtel from Indian Continent Investment in November last year. With the latest stake purchase, Bharti Telecom now holds approximately 40.5% of Bharti Airtel’s shares. The move is seen as part of Bharti Telecom’s long-term strategy to maintain a controlling position in the telecom company while ensuring a stable financial structure.

SingTel’s Potential Stake Sale

In addition to this transaction, CNBC-Awaaz reported that Singapore Telecommunications Limited (SingTel) is considering selling a portion of its stake in Bharti Airtel through a ₹8,500 crore block deal. According to the report, SingTel’s board is expected to meet this week to deliberate on the proposed stake sale, which is part of its broader capital management strategy. However, an official confirmation from SingTel is still awaited.

Promoter Holdings and Previous Stake Sales

As of the end of the December quarter, Indian Continent Investment, a promoter entity, held a 3.31% stake in Bharti Airtel. Meanwhile, SingTel’s subsidiary, Pastel Limited, retained a 9.5% direct equity stake in the company. Notably, in March last year, SingTel had previously offloaded a 0.8% stake in Bharti Airtel to GQG Partners via a block deal window.

Strategic Implications for Bharti Airtel

This series of transactions signals a strategic shift in the shareholding pattern of Bharti Airtel. Bharti Telecom’s increasing stake reaffirms its commitment to retaining control over the telecom major, while SingTel’s potential divestment indicates a recalibration of its investment strategy.

With India’s telecom industry witnessing rapid advancements and increasing competition, Bharti Airtel’s moves in the market will be closely watched by investors and analysts alike. The company’s financial stability, strategic partnerships, and long-term growth plans will play a crucial role in shaping its market position.