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Bharti Airtel to lower direct stake in Infratel from 50.33% to 18.3%

Airtel's unit Nettle Infrastructure Investments Ltd will buy an up to 32 per cent stake in Bharti Infratel by March 18


airtel, bharti airtel, airtel payments bank
Bharti Airtel

Ltd said on Tuesday mobile carrier and its majority shareholder Bharti Ltd will lower its direct stake in the telecom tower company by more than a half.

Airtel's unit Infrastructure Investments Ltd will buy an up to 32 per cent stake in by March 18, Infratel said in an exchange filing.

will own an 18.3 per cent stake in Infratel after the transfer, down from its current stake of 50.33 per cent.

"Whenever transfers stake to Infrastructure, (eventually) they will sell the stake to a third party. This will help them raise money," said a Mumbai-based an analyst, who did not want to be named.

Airtel, like its peers in the industry, has faced immense competition since the entry of Reliance Industries' upstart Jio in late 2016 with its debts soaring and profit margins eroding.

Singapore Telecommunications Ltd said last week it will buy roughly $525 million worth as part of Airtel's plan to raise $4.6 billion through shares and bonds.

will buy Infratel shares for up to 362.45 rupees each, a premium of up to 13.4 per cent to the stock's closing price on Monday. Nettle already owns a 3.18 per cent stake in Infratel.

shares fell as much as 3.4 per cent to 309 rupees.

First Published: Tue, March 12 2019. 14:01 IST