ICIL to Sell 3.43 Crore Shares in Bharti Airtel for Rs 7,189 Crore on Indian Stock Exchanges

A company linked to Sunil Bharti Mittal's family office plans to sell 3.43 crore equity shares in Bharti Airtel. This represents a 0.56% stake and is valued at approximately Rs 7,190 crore (USD 806 million). The sale will occur on Wednesday through the Indian stock exchanges. The shares will be sold at a floor price of Rs 2,096.70 each, which is a 3% discount from Tuesday's closing price of Rs 2,161.60 on the NSE.

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Indian Continent Investment Ltd (ICIL), a promoter entity of the Mittal family office, is managing the share sale. The transaction involves up to 34.3 million shares, equating to 0.56% of Bharti Airtel's outstanding share capital. According to a term sheet, the deal is valued at around USD 806 million or Rs 7,189.19 crore.

Stake Reduction and Lock-up Period

ICIL held a 1.48% stake in Bharti Airtel at the end of September, according to stock exchange data. After this sale, ICIL's holding will decrease to 0.92%. Following the transaction, ICIL will face a 90-day lock-up period on its remaining shares in Airtel, preventing further sales during this time.

The sale is entirely secondary, meaning no new shares will be issued; proceeds will go directly to the selling shareholders. Goldman Sachs India Securities Pvt Ltd is acting as the sole placement agent for this transaction.

Recent Transactions and Market Activity

Earlier this month, Singtel announced it had sold about a 0.8% stake in Bharti Airtel for Rs 10,353 crore (SGD 1.5 billion). This move aligns with Singtel's strategy to optimise its portfolio through asset recycling. In August, ICIL sold nearly a one per cent stake in Bharti Airtel for Rs 11,227 crore.

In February, Bharti Airtel revealed that ICIL had divested shares worth approximately Rs 8,485.11 crore through a market transaction. These transactions indicate ongoing adjustments in shareholder positions within Bharti Airtel.

The promoter entities of Bharti Airtel include Bharti Telecom Ltd and Singtel's affiliate Pastel Ltd, collectively holding a 50.27% stake in the telecom giant.

With inputs from PTI