Airtel Increases 4.94% Stake in Bharti Infratel for Around Rs 2,882 Crore

Telecom operator Bharti Airtel has increased its stake in Bharti Infratel by around 5%, the telco confirmed via a stock exchange filing. Nettle Infrastructure Investments Ltd, which is a wholly-owned subsidiary of Bharti Airtel, raised its stake in Bharti Infratel by 4.94% for an aggregate of Rs 2,882.32 crore. This news is reported by ET Telecom. In the stock exchange filing, Bharti Airtel confirmed that Providence (a US private equity firm) sold its 3.25% stake in the merged entity of Bharti Infratel and Indus Towers. The remaining stake was sold off by foreign institutional investors and overseas fund house Edge Point. The overall share of Bharti Airtel in Bharti Infratel increased to 41.66% from 36.73%.

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Bharti Airtel Increases Stake in Bharti Infratel to 41.66%

As noted, Nettle Infrastructure Investments Ltd. has acquired the entire stake of 3.25% from Providence, whereas foreign institutional investors and Edge Point sold the remaining stake. “Nettle Infrastructure Investments Ltd., a wholly-owned subsidiary of the company, has acquired an additional equity stake of 4.94% (or 13.3 crore shares) in Bharti Infratel Ltd. today,” Bharti Airtel said in a stock exchange filing, according to ET Telecom. Airtel also stated that the stake was acquired in open market block deals by paying Rs 2,882.32 crore.

With this new stake purchase, Airtel’ overall share in Bharti Infratel rises to 41.66%, of which Nettle’ stake is 18.62%. Under creeping acquisition norms, promoter purchases are capped at 5% of the equity in a year, the telco further added.