Singtel Offloads 1.2% Stake in Bharti Airtel for USD 1.5 Billion to Enhance Returns

Singtel announced the sale of a 1.2% direct stake in Bharti Airtel for SGD 2 billion, approximately USD 1.5 billion. This move aligns with Singtel's strategy to optimise its asset portfolio and enhance shareholder returns. The transaction involved selling 7.10 crore shares at an average price of Rs 1,814.08 each, totalling Rs 12,879.96 crore. Following this sale, Singtel retains a 28.3% stake in Bharti Airtel.

Representative image

Strategic Stake Sale

The sale was conducted through a private placement to both international and Indian institutional investors, including existing Airtel shareholders. Singtel's statement highlighted the strong interest from current shareholders and new investors, leading to an oversubscription and tighter pricing than initially anticipated. Most shares were acquired by domestic mutual funds and international long-only funds.

Singtel has been a strategic investor in Bharti Airtel for over two decades, working with Bharti Enterprises to balance its effective stake in the medium term. After this transaction, Singtel's remaining stake in Airtel is valued at around SGD 8 billion, with an estimated gain of SGD 1.4 billion. In recent years, Singtel raised approximately SGD 3.5 billion from selling Airtel shares.

Financial Performance

Bharti Airtel's shares closed at Rs 1,814.35 on the BSE, marking a 2.8% drop from the previous close. Pastel Ltd's holding in Bharti Airtel decreased from 9.49% to 8.29%. Meanwhile, Bharti Telecom Ltd remains the largest promoter entity with a 40.47% stake, while Indian Continent Investment Ltd holds a 2.47% stake.

In March last year, Singtel sold a 0.8% stake in Bharti Airtel for Rs 5,849 crore to GQG Partners and other investors backed by NRI Rajiv Jain. Previously, on September 22, 2022, Pastel divested a 1.59% stake for Rs 7,261 crore.

Long-term Investment Strategy

Arthur Lang, Singtel's Group CFO, expressed satisfaction with welcoming new investors who share their belief in Airtel's growth potential as India aims for a USD 1 trillion digital economy. Lang emphasised that this divestment strengthens Airtel’s shareholder base for long-term growth support.

Singtel's commitment to disciplined capital allocation and sustained value realisation for shareholders is evident in this transaction. This approach is integral to Singtel28's growth plan that focuses on active capital management and financial flexibility to fund growth initiatives while supporting capital returns.

Bharti Airtel's Financial Growth

Bharti Airtel reported a significant increase in consolidated net profit to Rs 11,022 crore in the March 2025 quarter due to tariff hikes and a one-time tax benefit of Rs 5,913 crore from favourable tax orders. Revenue from operations grew by 27% to Rs 47,876.2 crore compared to the previous year.

For the fiscal year ending March 31, 2025, Airtel saw a four-fold rise in consolidated net profit to Rs 33,556 crore from Rs 7,467 crore in FY24. The company's annual revenue increased by 15.33% to Rs 1,72,985.2 crore in FY25.

Bharti Airtel's net debt rose to Rs 2.03 lakh crore at the end of the reported quarter from Rs 1.94 lakh crore a year earlier.

With inputs from PTI