Singapore Telecommunications (Singtel) has made a significant divestment by selling a 1.2% direct holding in India's Bharti Airtel for S$2 billion (around $1.54 billion), one of the largest telecom block deals of 2025.
Deal Details:
Singtel sold 7.1 crore Airtel shares at ₹1,814 a share, a tad higher than the floor price of ₹1,800, a 3.6% discount to Airtel's last close. The sale was made in block deals and was brokered by JP Morgan. This reduces Singtel's direct holding in Airtel to 28.3% from 29.5%.
Strategic Rationale:
The deal is one of Singtel's continuing capital recycling initiatives, monetizing value from its stakes while maintaining a strong stake in Airtel. The company, through affiliate Pastel Ltd, held 9.49% directly before and had extra indirect exposure through Bharti Telecom.
Market Impact:
The block deal worth ₹13,221 crore generated high institutional demand owing to its size and price. Singtel's further sales of shares are now limited by a 60-day lock-up period to maintain market stability.
Airtel's Strong Performance:
The sale of stakes comes after Bharti Airtel's robust Q4 numbers, in which net profit jumped five times to ₹11,022 crore, led by tariff increases and operating efficiencies. The company's strong financials and increasing subscriber base have attracted foreign investors like a magnet.
Future Outlook:
Even though Singtel is partially exiting, the remaining stake continues to be an integral Airtel promoter, indicating sustained faith in the India telecom growth story.
Sources: Times of India, CNBC-TV18, TelecomTalk, MarketScreener, Business Today