Bharti Airtel Shares Shed 2% On Block Deal Worth Rs 1,856 Crore

Telecom giant Bharti Airtel witnessed a dip of over 2% in its shares during the early hours of trade on Thursday, December 7 as 0.8% equity, amounting to Rs 1,856 crore, changed hands through a block deal. The exchange saw a total transaction of 1.8 crore equity shares, constituting a 0.8% stake in the company, but the identities of the buyer and seller remained undisclosed.

The transaction comes on the back of a recent Bloomberg report indicating that US private equity major, Warburg Pincus, is set to divest its stakes not only in Bharti Airtel but also in IDFC First Bank. The report suggests that Warburg Pincus aims to raise $211 million by selling a stake in Bharti Airtel through a block deal, offering approximately 17.5 million shares at a floor price of Rs 1,005 per share.

Earlier this year, in June, Warburg Pincus offloaded shares totalling Rs 1,649 crore through its affiliate, Lion Meadow Investment Ltd in a block deal.

Just a day before the Bharti Airtel block deal, the American private equity giant exited its investment in Computer Age Management Services Ltd (CAMS). An affiliate, Great Terrain Investment Ltd, sold its entire 19.8% stake for Rs 2,700 crore via a block trade, reportedly making a four-fold profit at exit.

Last week, Bharti Telecom Ltd (BTL), a key promoter company of Bharti Airtel, made headlines by acquiring a significant stake. BTL acquired 1.35% shares of Bharti Airtel from Indian Continent Investment Limited (ICIL) in a block deal amounting to Rs 8,301.73 crore.

The shares of Bharti Airtel were seen trading with cuts of more than 2% at ₹1,003 per share as of 1 pm on the National Stock Exchange (NSE). Investors and market analysts are closely tracking the stock, and are anticipating further details about the buyer and seller in the significant block deal.