The stock market saw a significant transaction on February 18, 2025. Indian Continent Investment Limited, one of Bharti Airtel Limited's promoter entities, sold 5.1 crores of shares in a block deal worth ₹8,475 crores. This sale represented a 0.9% stake in the telecom major, making it one of the largest trades in recent times.
Acquisition of shares
Bharti Airtel confirmed that out of the total stake sold, Bharti Telecom—another promoter entity—picked up 1.2 crores of shares. The remaining shares went to key institutional investors, both in India and abroad.
This move strengthens Bharti Telecom Limited's hold on Bharti Airtel, increasing its stake to about 40.5%. The goal is to strengthen control while maintaining a balanced financial approach.
Market reaction
After the block deal, Bharti Airtel's shares saw some volatility. Interestingly, the deal comes with a 180-day lock-in period, meaning the seller and its associates cannot sell more shares during this time. Also, the shares traded under this block deal were strictly meant for this transaction and did not impact regular market trades. Investors aiming to invest in stocks should evaluate these factors before making a decision.
What's next for Bharti Airtel?
This is not the first time Bharti Telecom has increased its stake. In November last year, it acquired a 1.2% stake from Indian Continent Investment, signalling a long-term strategy to solidify its control.
Meanwhile, there is a buzz around Singapore Telecommunications Limited (SingTel) possibly selling its stake in Bharti Airtel through another big block deal worth ₹8,500 crores. Reports suggest SingTel's board is expected to meet soon to discuss the potential sale, though an official confirmation is awaited.
What this means for investors
As of the December quarter, Indian Continent Investment held a 3.31% stake in Bharti Airtel, while SingTel's subsidiary, Pastel Limited, owned 9.5%. Last year, SingTel had already offloaded a 0.8% stake via a similar block deal.
The shares of Bharti Airtel were trading at ₹1,664.75, down by 0.78% on February 18, 2025, at 11:20 AM. For those looking to invest in stocks, these high-value transactions can be insightful. Stake sales like this reflect promoter strategies and market trends, offering investors a chance to assess opportunities before they invest in stocks.
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