The shares of one of the world’s leading providers of telecommunication services company, specializing in mobile, broadband, and fixed-line services are in focus following the Block deal involving Singapore Telecommunications Limited (SingTel).
Price action
With a market capitalization of Rs. 9,54,923.02 crores on Monday, the shares of Bharti Airtel Limited fell upto 3 percent making a low of Rs. 1665.90 per share compared to its previous closing price of Rs. 1717.15 per share.
What Happened
Bharti Airtel Limited is engaged in providing mobile, broadband, and fixed-line services, i in focus after sources said Singapore Telecommunications Limited (SingTel) is planning to sell its stake in Bharti Airtel through a block deal, who added that the estimated value of this transaction is Rs. 8,500 crore.
SingTel’s board is expected to meet this week to discuss the proposed stake sale, which is part of its capital management strategy. However, an official response from Singtel on this matter is still awaited.
In the December 2024 quarter, Bharti Airtel’s promoters reduced their stake from 53.14 percent to 53.11 percent, while mutual funds increased their holdings from 10.71 percent to 11.37 percent. In March 2024, SingTel sold a 0.8 percent stake in Bharti Airtel to GQG Partners for Rs. 1,193.70 per share. By September 30, 2024, SingTel’s net debt was $7.8 billion and the company is set to announce its December quarter update on February 19, 2025.
SingTel’s subsidiary, Pastel Limited, owns a 9.5 percent stake in Bharti Airtel, bringing SingTel’s total interest to 28.9 percent, they are focusing on managing its capital actively and are exploring a $6 billion asset recycling plan as part of its financial strategy.
About the company
Bharti Airtel Limited is one of the largest telecom operators globally, providing mobile, broadband, and digital TV services across 18 countries in Asia and Africa. It offers a wide range of services, including high-speed internet, voice services, and enterprise solutions. It is a leader in mobile data services and has made significant investments in expanding its 4G and 5G networks.
Financials
The company’s total revenue rose by 18.9 percent from Rs. 38,339 crore to Rs. 45,599 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 2,442.2 crore to Rs. 14,781 crore during the same period.
Written by Sridhar J
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