Singapore Telecommunications Ltd (Singtel) is expected to sell shares in Bharti Airtel. Singtel's subsidiary, Pastel, is set to sell a 0.8 percent stake in Airtel through a block deal, with a total offer size of Rs 8,568 crore, according to reports by both Business Standard and CNBC-Awaaz on May 15, citing sources. The floor price for the deal has been set at Rs 1,800 per share, representing a discount of about 3.3 percent to Bharti Airtel's current market price.
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Deal Structure and Pricing Details
Singtel is reportedly looking to sell 4.76 crore shares in the telecom major, with JPMorgan likely to act as the broker for the transaction. The deal also includes a 60-day lock-in period, which means that Pastel will be restricted from selling additional shares in Airtel for the next two months.
As of the March 2025 quarter, Singtel holds a 9.49 percent direct stake in Bharti Airtel through its affiliate Pastel Ltd. Additionally, Singtel has an indirect holding in Airtel via Bharti Telecom, the holding company of Bharti Airtel, in which it also has an ownership interest.
Airtel's Q4 FY25 Financial Performance
The stake sale comes shortly after Bharti Airtel posted financial results for the quarter ended March 2025. The telecom operator reported a fivefold jump in consolidated net profit to Rs 11,022 crore, up from Rs 2,071.6 crore in the same period last year. The increase in profitability was largely attributed to tariff hikes and improved operational efficiency.
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Revenue from operations rose 27.3 percent to Rs 47,876.2 crore during the quarter, while revenue from its India operations climbed 28.8 percent year-on-year to Rs 36,735 crore. The average revenue per user (ARPU), a key performance metric for telecom firms, increased by 17 percent to Rs 245 during the quarter, compared to Rs 209 a year earlier. The company's subscriber base in India reached 42.4 crore as of the March quarter.
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