Stock in Focus: A big block deal may soon be seen in the shares of telecom giant Bharti Airtel. Singtel-owned promoter entity Pastel Ltd is preparing to sell about 0.8% stake for about ₹10,300 crore. This information was given by CNBC-TV18 on November 6 quoting sources.
The floor price has been set at ₹2,030 per share, which is 3.5% lower than the current share price. According to CNBC-Awaaz report, Pastel Ltd will sell approximately 51 million shares and JPMorgan will act as broker for this block deal.
Singtel has already sold stake
In May Singtel sold about 1.2% of its direct stake in Bharti Airtel for S$2 billion (about $1.5 billion). The company had said at that time that this is part of its active capital management, so that it can give better returns to investors by improving its asset portfolio.
Singtel said that the deal was done through private placement to international and Indian institutional investors. Existing shareholders of Airtel were also included in this.
Airtel Q2 results: Continuous increase in profits
Earlier this week, Bharti Airtel presented its September quarter results. This is the sixth consecutive quarter when the company’s profits increased.
The company benefited from users upgrading to high-margin plans like 4G and 5G. Additionally, there was a significant increase in the number of new subscribers. The company’s consolidated net profit rose 89% to ₹6,792 crore in the September quarter.
ARPU increased, huge jump in 4G-5G users
Airtel’s ARPU increased by 10% year-on-year to ₹256. This is considered to be the most important metric of the telecom sector. The number of 4G and 5G users in the company’s customer base has increased by 8.4%.
However, millions of people in the country are still dependent on 2G feature phones, especially in rural areas where affordable plans and digital literacy are a major hurdle. Airtel’s user base in India is expected to grow by 10.6% to around 450 million by September 30, 2025.
Status of Bharti Airtel shares
Bharti Airtel shares closed 0.87% lower at ₹2,095 on NSE on November 6. The stock has increased by 10.21% in the last 6 months. At the same time, it has given a return of 31.04% in 1 year. The stock has given a multibagger return of 374.40% in the last 5 years. Its market cap is Rs 12.55 lakh crore.
Disclaimer: thisYes, the information provided is being provided for information only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing money. Moneycontrol never advises anyone to invest money here.