Singapore-based telecom service provider Singapore Telecom (Singtel) has offloaded 1.2% of its direct stake in India’s second largest telco Bharti Airtel for approximately Rs 13,173 crore ($1.5 billion) through multiple block deals.
The firm, which also holds stake in Airtel’s promoter Bharti Telecom, said in a statement that the stake sale was part of its active capital management approach to optimise its asset portfolio and drive shareholder returns sustainably.
The transaction was executed via a private placement to international and Indian institutional investors, including existing shareholders of Airtel.
“The private placement received strong interest from existing shareholders and new investors and was well oversubscribed, resulting in both an increase in transaction size as well as tighter final pricing than initial guidance,” Singtel said.
On Thursday, it was reported that Singtel, through Pastel Limited, intended to offload 47.1 million shares, or 0.8% stake, in Airtel to raise $1 billion at a floor price of Rs 1,800 per share. The firm ended up offloading 71 million shares on Friday at a price of Rs 1,814 per share. Airtel’s stock was down 2.81% on the Bombay Stock Exchange at Rs 1,814.35 at the end of day’s trading on Friday.
A large majority of the transaction was sold to domestic mutual funds and international long-only funds.
“This transaction allows us to crystalise value at an attractive valuation while remaining a significant shareholder of Airtel,” Arthur Lang, group chief financial officer, Singtel said. He added that the transaction will further strengthen Airtel’s shareholder base so that it can collectively support its long-term growth.
“The divestment underscores Singtel’s commitment to disciplined capital allocation and sustained value realisation for shareholders,” he said, calling it a key tenet of the firm’s growth plan, where it has identified active capital management and the financial flexibility it brings, as integral to funding growth initiatives while supporting capital returns.
An investor in Airtel for over two decades, Singtel has been working with Bharti Enterprises to equalise its effective stake in Airtel in the medium term, the firm said.
As a result of this transaction, Singtel will hold now 28.3% stake in Airtel (earlier stake was 29.5%), valued at an estimated S$48 billion.
This bulk deal is the latest in a spate of transactions that Singtel has undertaken to divest stake in the Indian telco.
In 2022 and 2024, Singtel raised a total of approximately $3.5 billion Singapore dollars (approximately Rs 23, 053 crore) from the progressive sale of Airtel shares – a 3.3% stake to Bharti Telecom and 0.8% direct stake to GQG Partners, respectively.