Bharti Airtel Shares Drop 4% as Singtel Offloads Stake Worth Rs 10,915 Crore

The shares of Bharti Airtel Ltd. fell 4.35% on Friday after Singtel reportedly offloaded a stake worth Rs 10,195 crore (Singaporean $1.15 billion). Singtel likely sold 0.8% stake in the telecom giant, reported Bloomberg.

Singtel’s Stake in Bharti Airtel

Singtel directly owns 7.5% stake and indirectly (via Bharti Telecom) owns 20% taking the total ownership stands at 27.5%. Singtel, the Singapore-based telecommunications giant, holds Airtel shares through its subsidiary, Pastel Ltd.

The company sold shares worth Rs 8,568 crore through block deal in May. The company had plans to sell approximately 4.76 crore shares, with the floor price for the block deal set at Rs 1,800 per share. JPMorgan, a multinational investment bank, was said to be the broker for this transaction.

Historical Context

Singtel has been a strategic investor in India’s leading telecom provider since 2000. In 2022, Singtel divested a 3.3% stake for Rs 12,895 crore to Bharti Telecom, Airtel’s holding company. Additionally, last year, it sold a 0.8% stake for Rs 5,850 crore to Rajiv Jain’s GQG Partners.

Singtel has mopped up close to Rs 42,300 crore in the last three years by selling its directly held stake, according to NDTV Profit calculation, while Mittal Family has mopped up close to Rs 31,200 crore in the last one year by selling its directly held stake.

Market Reaction

The scrip fell as much as 4.35% to Rs 2,003.80 apiece after the earnings were announced. It pared losses to trade 4.02% lower at Rs 2,010.40 apiece, as of 10:39 a.m. This compares to a 0.56% decline in the NSE Nifty 50 Index.

It has risen 27.53% in the last 12 months and 26.57% year-to-date. Total traded volume so far in the day stood at 5.21 times its 30-day average. The relative strength index was at 61.80.

Analyst Outlook

Out of 32 analysts tracking the company, 25 maintain a ‘buy’ rating, two recommend a ‘hold,’ and five suggest ‘sell,’ according to Bloomberg data. The average 12-month consensus price target of Rs 2239.69 implies an upside of 11.3%.

For investors looking to stay updated on the latest developments in the Indian stock market, it’s essential to keep an eye on stock market news and trends. Additionally, understanding the Nifty levels and Sensex news can help investors make informed decisions.

Conclusion

In conclusion, the recent drop in Bharti Airtel’s shares due to Singtel’s stake offloading has sparked concerns among investors. However, with the company’s strong historical performance and positive analyst outlook, it’s essential for investors to stay informed and adapt to the changing market trends. By keeping an eye on Indian stock market news and telecom sector news, investors can make informed decisions and navigate the ever-changing landscape of the Indian stock market.