Singtel may sell 2-4% stake in Bharti Airtel to Sunil Mittal family
Premium- Singtel will be able to generate close to ₹7,500 crore on sale of its 2% stake
Singapore-based telecom firm Singtel is in talks with Bharti Airtel chairman Sunil Mittal to sell a part of its stake and may sell about 2-4% equity in Bharti Airtel, reported news agency PTI quoting sources. Singtel will be able to generate close to ₹7,500 crore on sale of its 2% stake, as per market capitalisation.
"The discussion is going on between Singtel and Mr Mittal. Singtel is looking to sell 2-4 per cent stake in Bharti Airtel to Mr Mittal," a source told PTI. However, it is not disclosed whether the transaction will take place in Bharti Airtel or Bharti Telecom.
Singapore Telecommunications Ltd (Singtel) and the Mittal family are shareholders in Bharti Airtel's promoter company Bharti Airtel. Singtel's effective stake in Bharti Airtel is 31.7% whereas it holds a 49.44% stake in Mittal family-owned firm Bharti Telecom. Bharti Telecom holds a 35.85% in Bharti Airtel.
In March this year, Singtel monetised partial stake in Airtel Africa as part of its capital recycling strategy. It raised net proceeds of approximately S$150 million from the placement which was oversubscribed.
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India's second-largest telecom operator Bharti Airtel posted more than twofold year-on-year jump in its consolidated net profit for the March quarter to ₹2,008 crore, buoyed by a lift in average revenue per user (ARPU) and an exceptional gain. Airtel's revenue from operations rose 22% year-on-year (YoY) to ₹31,500 crore during Q4 FY22.