KOLKATA: Singapore Telecommunications (Singtel) and the Mittal family — the promoters of Bharti Airtel — are preparing a plan for each of them to hold equal direct stakes in India’s second-largest telecom operator, said a top Singtel executive.

Currently, Singtel directly owns 9.5% in Bharti Airtel through its affiliate, Pastel Ltd, while the Sunil Mittal-led promoter family holds a 3.31% direct stake through Indian Continent Investment Ltd (ICIL), a promoter group entity.

“…we will look to equalise our direct stakes over time. (While) we are in no hurry in equalising that stake, we are looking to do that in the medium term,” Arthur Lang, group chief financial officer at Singtel, told analysts during the company’s first half FY25 earnings call on November 13.

Industry executives said the exercise is part of Singtel’s plans to boost shareholder returns and increase returns on invested capital. They added that the Singapore-based carrier has also set in motion a value-unlocking strategy to raise funds for other ventures like data centres.

Singtel and the Bharti Group did not respond to ET’s queries.

Bharti Telecom’s Debt Up
Currently, Singtel and the Mittal family effectively own 29.44% and 23.7%, respectively, in Bharti Airtel through a mix of direct and indirect holdings.

The indirect holdings are routed through Bharti Telecom Ltd (BTL) — the main controlling company that owns 40.33% in Airtel. Singtel’s 29.44% effective holding in Airtel comprises a 9.5% direct stake via Pastel and a 19.94% indirect stake through BTL. Likewise, the Mittal family’s 23.7% overall holding in Airtel comprises a 3.31% direct stake via ICIL and a 20.39% indirect stake through BTL.


The Mittal family-controlled Bharti Group and Singtel own 50.56% and 49.44% in BTL, respectively.

If the direct stakes of both partners equalise at about 6% each and the shareholding structure of BTL and its 40.33% stake in Airtel remains unchanged, the Mittal family could potentially end up with a higher effective shareholding than Singtel in the New Delhi-based telco.

At Airtel’s current market cap of about Rs 8,75,619 crore, an additional 1% stake in the company would cost Rs 8,756.2 crore. Shares of Airtel closed 0.83% lower at Rs 1,537.70 apiece on the BSE on Monday.

In September 2022, Singtel had sold a 3.33% direct stake in Airtel via multiple block deals to BTL for about Rs 14,500 crore. Earlier this year, Singtel sold another 0.8% in Airtel, through its unit Pastel, to US investment firm GQG Partners for about Rs 5,885 crore.

Both Singtel and the Mittal family have been shifting their direct holdings in Airtel to BTL, which has been funding such deals via debt. Consequently, BTL’s debt levels have risen in recent years, totalling Rs 24,290 crore as of September 30, 2024, mainly due to its rising stake in Bharti Airtel.

Last month, BTL further increased its stake in Airtel to 40.33% by acquiring 1.2% from Airtel promoter group entity, ICIL, through an off-market transaction. BTL is also reckoned to have raised around Rs 11,150 crore through an issuance of non-convertible debentures (NCDs).

Singtel has been a long-term investor and a shareholder in Airtel since 2000. But going forward, it is counting on higher dividend payouts by associate, Bharti Airtel, to enable the latter’s controlling company, BTL, to service its mounting debt.