Bharti Airtel: Promoter Firm Bharti Telecom Buys Additional 1.35% Stake For Rs 8,301 Crore

Bharti Telecom, the promoter firm of Bharti Airtel, India's second-largest telecom services provider, has acquired an additional 1.35 per cent stake in the company through an open market transaction. The transaction, worth Rs 8,301 crore, will increase Bharti Telecom's direct stake in Bharti Airtel from 38.35 per cent to 39.7 per cent.

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Details of the Transaction

According to sources, Bharti Telecom purchased more than 8.11 crore shares, amounting to a 1.35 per cent stake in Bharti Airtel. The shares were acquired at an average price of Rs 1,023 apiece, taking the aggregate transaction value to Rs 8,301.73 crore. The stake was acquired from promoter group entity Indian Continent Investment Ltd, which held a 5.93 per cent stake in Bharti Airtel as of September 30, 2023.

Bharti Telecom's Shareholding Pattern

With this transaction, Bharti Telecom's direct stake in Bharti Airtel will increase to 39.7 per cent. As of September 30, 2022, Singapore-based Singtel held a 50.56 per cent stake in Bharti Telecom, and the Mittal family held a 49.44 per cent stake. After the transaction, Singtel Group will own an effective stake of 29.7 per cent in Bharti Airtel, comprising a 19.2 per cent indirect stake through Bharti Telecom and a 10.5 per cent direct stake.

Bharti Airtel's Share Price

On Friday, shares of Bharti Airtel fell 0.27 per cent to close at Rs 1,012 apiece on the National Stock Exchange (NSE). Despite the decline, Bharti Airtel's shares have outperformed the broader market this year, rising nearly 10 per cent.

The acquisition of an additional stake in Bharti Airtel by Bharti Telecom reflects the promoter group's confidence in the company's growth prospects. Bharti Airtel is India's second-largest telecom operator with a market share of over 30 per cent. The company has been investing heavily in expanding its 4G and 5G networks and has been gaining market share from its rivals. With the increasing demand for data services in India, Bharti Airtel is well-positioned to continue its growth in the coming years.