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Bharti Airtel gained 4% to Rs 439 on BSE after the company announced that Singapore Telecommunications (Singtel) will invest Rs 26.49 billion in Bharti Telecom through preferential allotment of shares. Bharti Telecom is the promoter company of Bharti Airtel. The transaction is subject to the shareholders’ approval of Bharti Telecom. The funds raised will be used towards debt reduction, Bharti Airtel said in a press release. With this investment, Singtel’s total stake (along with its affiliates) in Bharti Telecom will increase to 48.90%. Singtel currently holds 47.17% stake in Bharti Telecom. Bharti Enterprises continues to hold over 50% stake in Bharti Telecom. The fresh round of investment highlights the confidence of Singtel in Airtel, and the increased attractiveness of the Indian telecoms sector following the recent consolidation.
The investment comes within 23 months of Singtel's participation in Bharti Telecom’s Right Issue of Rs 25 billion, which was completed in February 2016, the company said. The fresh round of investment highlights the confidence of Singtel in Airtel, and the increased attractiveness of the Indian telecoms sector following the recent consolidation, Deven Khanna, Managing Director, Bharti Telecom, said. The stock of Bharti Airtel had underperformed the market by falling 22% since January 5, as compared to 1.6% rise in the S&P BSE Sensex till Friday.