The stock of Bharti Airtel surges as much as 6% in intraday trade on Monday after Singtel will invest Rs 2,649 crore in Bharti Telecom. Singtel, a Singapore based telecom company owns 47.17% stake in Bharti Telecom.
In a filing Bharti Airtel said, "Airtel Limited...announced that Singapore Telecommunications Limited (Singtel)... will invest Rs 2,649 crore in Bharti Telecom, the promoter company of Airtel through preferential allotment of shares".
The filing further added that the investment by SIngtel is subject to approval from the company's shareholders and the capital mopped up shall be used for paring the company's debt.
With the additional investment, Singtel's total stake in Bharti Telecom will increase to 48.9%."Airtel shares a nearly two-decade-long relationship with Singtel, which has only become stronger over the years. The fresh round of investment highlights the confidence of Singtel in Airtel, and the increased attractiveness of the Indian telecoms sector following the recent consolidation," said Deven Khanna, Managing Director, Bharti Telecom.
The scrip of Bharti Airtel was quoting at Rs. 441.45 higher by 4.66% on the BSE at 1:36 pm.