Singtel Reduces Bharti Airtel Stake: Sells Shares Worth ₹13,221 Crore in Block Deal

In a significant market transaction, Singapore Telecommunications (Singtel) has confirmed selling a portion of its stake in Indian telecom giant Bharti Airtel. The deal, valued at over ₹13,000 crore, represents one of the largest block deals in India's telecom sector this year.

Key Details of the Transaction

Singtel officially confirmed on Friday, May 16, 2025, that it has divested 7.1 crore shares of Bharti Airtel through block deals. The transaction was executed at ₹1,814 per share, slightly above the floor price of ₹1,800 that was set for the deal. The total value of the transaction stands at $1.54 billion (approximately ₹13,221 crore).

Following this divestment, Singtel's overall stake in Bharti Airtel has decreased from 29.5% to 28.3%, representing a reduction of 1.2 percentage points. The company executed this transaction through its unit Pastel, which held a 9.49% stake in Bharti Airtel according to the March quarter shareholding pattern.

Market Impact and Stock Performance

The announcement of this significant stake sale has had an immediate impact on Bharti Airtel's stock performance. Following the transaction, shares of Bharti Airtel declined by 2.6% to trade at around ₹1,818 on Friday morning.

Despite this dip, it's worth noting that the stock had closed near its all-time high of ₹1,917 on Thursday. The telecom company's shares have demonstrated strong performance in 2025, gaining approximately 17% year-to-date as of Thursday's close. This impressive run has positioned Bharti Airtel among the top performers on the Nifty 50 index this year.

Transaction Structure and Terms

The block deal was structured with several key parameters:

• Floor price set at ₹1,800 per share (3.6% discount to Thursday's closing price)
• Actual transaction executed at ₹1,814 per share
• Total of 7.1 crore shares changed hands
• 60-day lock-up period imposed for further share sales

While the transaction details have been confirmed, the identities of the buyers remain undisclosed at this time, adding an element of intrigue to the market movement.

Strategic Implications for Both Companies

This stake reduction by Singtel raises questions about the Singapore-based telecom giant's long-term strategy regarding its investment in Bharti Airtel. While the reduction is relatively modest at 1.2 percentage points, it represents a significant monetary value given Bharti Airtel's current market capitalization.

For Bharti Airtel, the change in shareholding structure could potentially influence future strategic decisions, though the immediate operational impact is likely minimal given that Singtel remains a major shareholder with over 28% stake.

Industry Context and Outlook

The transaction comes at a time when India's telecom sector continues to evolve rapidly. Bharti Airtel has been strengthening its position in the market with expanding 5G services and growing average revenue per user (ARPU). The company has been focusing on premium customer acquisition and retention while expanding its digital services portfolio.

The telecom sector in India has witnessed significant consolidation over recent years, leaving three major private players - Reliance Jio, Bharti Airtel, and Vodafone Idea. Among these, Bharti Airtel has demonstrated strong financial performance and network expansion, making its shares attractive to investors despite the competitive landscape.

Market analysts will be closely watching whether this partial stake sale by Singtel signals the beginning of a larger divestment strategy or represents a one-time portfolio adjustment. The imposed 60-day lock-up period suggests that no immediate further reductions are planned.

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