Economy

Bharti Airtel sells stake in Bharti Infratel for Rs3,325 crore

Bharti Airtel sells stake in Bharti Infratel for Rs3,325 crore

As of September 2017, Airtel's consolidated debt stood at Rs. 91,480 crores.

This transaction would fetch India's largest telecom operator by customers about Rs 3,325 crore ($510 million) excluding transaction costs and statutory levies, Bharti Airtel said in a stock exchange filing.

Shares of Bharti Infratel fell almost 3 per cent, while those of parent Bharti Airtel rose over 1 per cent in Tuesday's trade amid reports that the latter had sold stake in the former via block deals.

The firm said the share sale saw interest from various global investors, fund managers and long-only funds, including many repeat investors. Nettle Infrastructure Investments Ltd, the wholly-owned unit of Airtel sold each share at Rs. 400.6 in stock market transactions at a discounted price of 3.6% compared to Monday's closing price.

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Bharti Airtel and its subsidiaries now own 53.5% stake in Bharti Infratel.

UBS, Goldman Sachs and JP Morgan were running the share sale for India's leading telco.

Telecom tower companies have been grabbing the headlines over the last few weeks. Bharti Infratel settled 4.16 per cent down at Rs 394, whereas Bharti Airtel closed at Rs 497.70, down 0.07 per cent on Tuesday. In 2014 it said Bharti Infratel wanted to buy Aircel and Vodafone India's towers, but this week Vodafone India and Idea Cellular - which are merging - said they were selling their towers to ATC of the USA for $1.2 billion.

With this movement, the share price of Bharti Infratel tumbled by almost 4% on stock exchanges. Net worth of Infratel was at Rs 9,141.3 crore in FY17.