Pastel Ltd, an affiliate of Singtel, sold 71 million shares in the Sunil Mittal-led Bharti Airtel at Rs 1,814 apiece. The deal price reflects a discount of around 2.83% to Airtel’s closing price on Thursday.
“The transaction was executed via a private placement to international and Indian institutional investors, including existing shareholders of Airtel,” Singtel said in an official statement on Friday.
It added that the private placement “received strong interest from existing shareholders and new investors and was well oversubscribed,” resulting in both an increased transaction size and tighter final pricing than initially guided. A large majority of the transaction was sold to domestic mutual funds and international long-only funds, the Singaporean telco added.
Following the completion of this latest stake sale, Singtel’s effective holding in Airtel will decline to 28.3% from 29.5% previously. The transaction will generate an estimated gain of S$1.4 billion (approximately $1.08 billion), the company said.
Bharti Airtel shares were down 2.71% at Rs 1,816.30 in mid-morning trade on the BSE on Friday.Singtel said the direct stake sale in Airtel is part of its active capital management strategy to optimise its asset portfolio and drive sustainable shareholder returns.“This transaction allows us to crystallise value at an attractive valuation while remaining a significant shareholder of Airtel. We are pleased to welcome new like-minded investors who share our conviction in Airtel’s strong growth potential as India pursues its vision of achieving a $1 trillion digital economy. This will further strengthen Airtel’s shareholder base so that we can collectively support its long-term growth,” said Arthur Lang, Singtel’s Group Chief Financial Officer.
He added that the divestment underscores Singtel’s commitment to disciplined capital allocation and sustained value realisation for shareholders. “This is a key tenet of our Singtel28 growth plan, where we’ve identified active capital management and the financial flexibility it brings as integral to funding growth initiatives while supporting capital returns.”
At present, Singtel holds a 49.44% stake in Bharti Telecom Ltd (BTL), the main promoter-level holding company of Bharti Airtel. The Mittal family-backed Bharti Group owns the majority 50.56% stake in BTL.