04-Dec-2023
2 mins read
Bharti Telecom, a major promoter of Bharti Airtel Limited, has made strategic moves in acquiring additional stakes within the telecom giant, marking its consistent commitment to the company’s growth and expansion.
Stake Acquisition
In a recent open market transaction, Bharti Telecom secured an additional 1.35% stake in Bharti Airtel for Rs 8,301 crore. This acquisition involved purchasing over 8.11 crore shares at an average price of Rs 1,023 per share. Simultaneously, another promoter entity, Indian Continent Investment Limited, offloaded an identical number of shares at the same price.
Stake Distribution
As of the September quarter data, Bharti Telecom previously owned 38.35% of Bharti Airtel, while Indian Continent Investment Limited maintained a 5.93% stake.
Recent Developments
The recent transaction, however, witnessed Bharti Telecom’s stake increase to 39.7% directly in Bharti Airtel. This notable rise occurred due to the acquisition from Indian Continent Investment Limited, which previously held a 5.93% stake as of September 30, 2023.
Past Transactions
This move follows a trend of strategic transactions within the company. In September last year, Singtel entities divested a 1.76% stake in Bharti Airtel, valued at approximately Rs 7,128 crore. Bharti Telecom acquired 1.63% of this stake from Singtel’s entity, Pastel Limited, amounting to Rs 6,602 crore through an open market transaction.
Promoter Holdings
Bharti Enterprises, spearheaded by Sunil Mittal, commands a majority stake of 50.56%, while Singapore Telecommunications (Singtel) possesses the remaining 49.44% in Bharti Telecom Limited.
In summary, Bharti Telecom’s continuous endeavour to strengthen its position within Bharti Airtel signifies a strategic vision aligned with the company’s growth trajectory. These recent transactions underline their commitment to further consolidation and expansion within the telecommunications sector.