TCIL May Look to Sell Up to 10% Stake in Bharti Hexacom: Report

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tcil may look to sell up to

Bharti Hexacom, a subsidiary of Bharti Airtel operates in the Rajasthan and Northeast regions of India. One of its largest stakeholders is government-run Telecommunications Consultants India Ltd (TCIL). As per reports, TCIL is looking to sell its stake in Bharti Hexacom. TCIL owns a 15% stake in Bharti Hexacom out of which it may sell about 5-10% stake via Offer for Sale (OFS) to both institutional and public shareholders. The sale is expected to conclude in FY25 only, said an ET report quoting a government official.

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The discussions will start soon regarding the timing of the sale, how much stake needs to be offloaded, and the minimum price (floor price). The report added that both the finance ministry and the telecom department will be involved in this. TCIL’s 15% stake in Bharti Hexacom is worth around Rs 10,500 crore (approximately).

Any action for a stake sale via TCIL will be done as per the guidelines from the Department of Investment and Public Asset Management (DIPAM) and SEBI rules. TCIL had a 30% stake in Bharti Hexacom originally. However, the government sold a 15% stake making about Rs 4,275 crore at Rs 570 a share price. The share price of Bharti Hexacom is currently trading beyond Rs 1300, which would garner more money for the remaining 15% stake for the government in the telco.