Bharti Airtel block deal: Singtel to offload Rs 8,500 cr worth shares, floor price at Rs 1,800

Singapore-based telecom giant Singtel's Pastel Ltd is likely to sell shares worth $1 billion (approx. Rs 8,600 crore) in Bharti Airtel through a large block deal on Friday.

The deal involves the sale of 4.76 crore shares, with the floor price set at Rs 1,800 per share — a 3.6% discount to Bharti Airtel’s prevailing market price. The transaction is expected to attract institutional investors, given the scale and pricing of the offering.

Singtel currently holds a significant stake in Airtel, with a direct 9.5% ownership through its affiliate, Pastel Ltd. Additionally, Singtel has an indirect interest in Airtel, totaling 29%, through its 49.44% stake in Bharti Telecom Ltd (BTL), the primary promoter entity of Airtel. BTL itself owns 40.47% of Airtel, while the Mittal family holds a 2.47% direct stake through another promoter entity, Indian Continent Investment Ltd (ICIL).

The deal will be managed by JP Morgan, the designated broker for the transaction. Singtel's Pastel currently holds a 9.49% stake in Bharti Airtel and this sale will reduce its holding by just under 1%.

Singtel's upcoming sale on Friday will signify its first significant ownership change since March of last year. During that time, Singtel sold a 0.8% stake in Airtel, comprising of 49 million shares, to US investment management firm GQG Partners for $711 million. SBI Pension, SBI Life, and ICICI Prudential were notable buyers in the domestic market.

Singtel has been gradually paring its stake in Bharti Airtel as part of its broader capital recycling strategy, and this move aligns with its plans to reallocate capital toward its core and digital businesses.

Prior to this, Pastel had sold off a 1.59% stake in Bharti Airtel for Rs 7,261 crore through an open market transaction in November 2022. This occurred three months after Singtel disposed of a 3.3% stake in Bharti Airtel to BTL forRs 12,895 crore, equivalent to $1.6 billion, in August 2022.

Airtel's Q4 result

In the fourth quarter, Bharti Airtel saw a noteworthy 77% year-on-year surge in its adjusted profit after tax (PAT), reaching Rs 5,223 crore. This growth was supported by a solid 27% increase in quarterly revenues, which hit Rs 47,876 crore. The company's performance was largely driven by strong momentum in the Indian market, a rebound in Africa's reported currency revenue, and the full quarter impact of the Indus Towers consolidation.

Airtel's revenue in India surged by 29% year-on-year to Rs 36,735 crore, with mobile revenue witnessing a 21% growth thanks to tariff adjustments and the premiumisation of its portfolio. The average revenue per user (ARPU) for the quarter was Rs 245, compared to Rs 209 in the same period last year.

The consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 40% year-on-year to Rs 27,404 crore, with an EBITDA margin of 57.2%.This margin was even higher in India, reaching 60%. The net debt-to-EBITDA ratio improved to 1.86 times on an annualised basis from 1.98 times in December 2024. 

Bharti Airtel share price closed at Rs 1,863.10, up by 1.58% on the NSE.