Singapore's Singtel sells 1.2% stake in Bharti Airtel for $1.54 billion

Singtel reduces its Bharti Airtel stake from 29.5% to 28.3% after selling 71 million shares for $1.54 billion through its wholly owned unit Pastel

Singapore Telecommunications Ltd (Singtel) has sold a 1.2 per cent direct stake in Bharti Airtel for S$2 billion (approximately $1.54 billion), resulting in an estimated gain of S$1.4 billion, the company said in an exchange filing.

 

The sale was executed through Pastel, a wholly owned unit of Singtel, which offloaded 71 million Airtel shares at ₹1,814 per share. The transaction was priced at a 2.85 per cent discount to Airtel's closing stock price on Thursday.

 

Following the sale, Singtel’s holding in Bharti Airtel will fall to 28.3 per cent from 29.5 per cent. The remaining stake is now valued at around S$48 billion.

 

This latest deal follows previous stake sales — a 3.3 per cent stake sold to Bharti Telecom and a 0.8 per cent stake to GQG Partners in 2022 and 2024, respectively. Those sales raised approximately S$3.5 billion, which Singtel said supported its 5G rollout, digital infrastructure expansion, and sustainable shareholder returns. 

 

Still committed to Airtel: Singtel

Singtel said the transaction is part of its efforts to streamline its portfolio and enhance long-term shareholder value. Despite the sale, the company reaffirmed its commitment as a long-term strategic investor in Airtel, having been involved with the telecom giant for over 20 years.

 

“This transaction allows us to crystallise value at an attractive valuation while remaining a significant shareholder of Airtel,” said Arthur Lang, Group Chief Financial Officer, Singtel. “We are pleased to welcome new like-minded investors who share our conviction in Airtel’s strong growth potential as India pursues its vision of achieving a US$1 trillion digital economy. This will further strengthen Airtel’s shareholder base so that we can collectively support its long-term growth.”

 

A majority of the stake was acquired by domestic mutual funds and long-only international funds.

 

“The private placement received strong interest from existing shareholders and new investors and was well oversubscribed, resulting in both an increase in transaction size and tighter final pricing than initial guidance,” Singtel’s filing stated.

 

Bharti Airtel stock and quarterly growth

Bharti Airtel shares were trading down 2.8 per cent at ₹1,816.3 on Friday following the announcement.

 

Earlier this week, Airtel reported a 432 per cent year-on-year increase in consolidated net profit at ₹11,022 crore for the fourth quarter of financial year 2024–25. The telecom major attributed this sharp growth to strong business momentum in India, a rebound in reported currency revenue growth in Africa, and the full-quarter effect of the Indus Towers consolidation.