Singapore-based Singtel to sell 2-4% Airtel stake to Sunil Mittal

Following the deal, Singtel, a major stakeholder and a promoter company of Bharti Airtel will be able to generate close to Rs 7,500 crore on sale of its 2% stake, as per market capitalisation.

Published: 27th May 2022 07:57 AM  |   Last Updated: 27th May 2022 07:57 AM   |  A+A-

Singtel

A Singtel logo is pictured at their head office in Singapore. Reuters

By Express News Service

NEW DELHI:  Singapore-based telecom firm Singtel is in talks with Bharti Airtel chairman Sunil Mittal to sell 2-4% of its stake in Bharti Airtel. 

Following the deal, Singtel, a major stakeholder and a promoter company of Bharti Airtel will be able to generate close to Rs 7,500 crore on the sale of its 2% stake, as per market capitalisation. However, as per the reports, the exact details of the transactions haven’t been worked out yet. Singtel’s stake in Airtel is 31.7% and it holds a 49.44% stake in Mittal family-owned firm Bharti Telecom. The market cap of Bharti Airtel is Rs 3.78 lakh crore. 

If Singtel sells shares worth $1 billion, it would reduce Singtel’s holding by close to 2% to less than 30%, while divesting shares worth $2 billion would reduce Singtel’s holding by 4%. Airtel reported a net income of Rs 2,008 crore in Q4FY22, a year-on-year growth of 164.5%. The surge in net profit was driven by an exceptional gain of Rs 906 crore and spurt in ARPU.



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