New Delhi, May 16 (PTI) Singtel on Friday said it has sold about 1.2 per cent of its direct stake in Bharti Airtel for SGD 2 billion (roughly USD 1.5 billion) in sync with its active capital management approach to optimise its asset portfolio and drive shareholder returns.
According to the bulk deal data available on the National Stock Exchange (NSE), Singtel's arm Pastel Ltd offloaded 7.10 crore shares or 1.2 per cent stake in Bharti Airtel.
The shares were disposed of at an average price of Rs 1,814.08 apiece, taking the aggregate transaction value to Rs 12,879.96 crore.
Following the sale of 1.2 per cent equity, Singtel will hold a 28.3 per cent stake in India's second-largest telecom operator Airtel.
The transaction was executed on a private placement basis to international and Indian institutional investors, including existing shareholders of Airtel, according to Singtel.
"Singtel has sold approximately 1.2 per cent of its direct stake in regional associate Airtel today for SGD 2.0 billion as part of its active capital management approach to optimise its asset portfolio and drive shareholder returns sustainably," Singtel - Southeast Asia's largest telecoms provider - said in a statement.
It said the private placement drew strong interest from existing shareholders and new investors and was well oversubscribed, resulting in an increase in transaction size and tighter final pricing than initial guidance. A large majority of the transactions were sold to domestic mutual funds and international long-only funds.
A long-term strategic investor in Airtel for over two decades, Singtel said it has been working with Bharti Enterprises to equalise its effective stake in Airtel in the medium term.
Post the sale of 1.2 per cent holding, Singtel will have a 28.3 per cent stake in Airtel, valued at an estimated SGD 8 billion, and generate an estimated gain of SGD 1.4 billion.
In 2022 and 2024, Singtel raised a total of about SGD 3.5 billion from the progressive sale of Airtel shares – a 3.3 per cent stake to Bharti Telecom and 0.8 per cent direct stake to GQG Partners. This has helped to support the Group’s 5G deployment, digital infrastructure expansion and sustainable shareholder distributions, Singtel said.
"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 USD 1 trillion digital economy," Arthur Lang, Singtel's Group Chief Financial Officer, said.
This, the Singtel CFO said, will further strengthen Airtel’s shareholder base, so that long-term growth can be collectively supported.
"The divestment underscores Singtel’s commitment to disciplined capital allocation and sustained value realisation for shareholders," Lang pointed out.
This is a key tenet of 'Singtel28' growth plan that has identified active capital management and the financial flexibility it brings as integral to funding growth initiatives while supporting capital returns.
Bharti Airtel shares closed at Rs 1,814.35 per share on BSE on Friday, 2.8 per cent lower than the previous close.
After the transaction, Pastel's holding in Bharti Airtel declined to 8.29 per cent from 9.49 per cent.
Details of the buyers of Bharti Airtel's shares could not be ascertained on the NSE.
Meanwhile, Bharti Telecom Ltd (BTL) remained the largest promoter entity with a 40.47 per cent stake, while another promoter group Indian Continent Investment Ltd owned a 2.47 per cent stake in the company.
The Sunil Bharti Mittal family and Singtel owned 50.56 per cent and 49.44 per cent, respectively, in BTL. Singtel has been a strategic investor in telecom giant Bharti Airtel since 2000.
Shares of Bharti Airtel declined 2.83 per cent to close at Rs 1,814.40 apiece on the NSE.
In March last year, Singtel offloaded a 0.8 per cent stake in telecom company Bharti Airtel for Rs 5,849 crore to NRI Rajiv Jain-backed GQG Partners and other investors.
Prior to that, Singtel's unit Pastel on September 22, 2022, divested a 1.59 per cent stake in Bharti Airtel for Rs 7,261 crore.
On September 7, 2022, Singtel, through its affiliates -- Pastel and Viridian -- jointly sold a 1.76 per cent stake in Bharti Airtel for about Rs 7,128 crore, and Bharti Airtel promoter Bharti Telecom Ltd has bought a 1.63 per cent stake from Singtel for Rs 6,602 crore.
Bharti Airtel posted about a five-fold jump in consolidated net profit to Rs 11,022 crore in the March 2025 quarter, mainly due to the tariff hike impact and one-time gain on tax benefits.
During the reported quarter, Bharti Airtel received favourable orders in certain tax-related matters, which helped it with a one-time tax benefit of around Rs 5,913 crore.
The company's revenue from operations grew 27 per cent to Rs 47,876.2 crore during the quarter under review from Rs 37,599.1 crore in the March 2024 quarter.
For the year ended March 31, 2025, Airtel posted about a four-fold increase in consolidated net profit to Rs 33,556 crore from Rs 7,467 crore in FY24.
The annual revenue from the operations of Bharti Airtel grew 15.33 per cent to Rs 1,72,985.2 crore in FY25.
Its net debt increased to Rs 2.03 lakh crore at the end of the reported quarter from Rs 1.94 lakh crore a year ago.