Indian Continent Investment Ltd., a promoter entity of Bharti Airtel Ltd., plans to sell 4.82 crore shares or an 0.8% equity stake in the telecom company through a block deal on Tuesday, according to people with knowledge of the matter.
The floor price for the transaction has been set at Rs 1,659 per share, representing a 1% discount to the current market price. The deal is valued at approximately Rs 7,800 crore and is expected to take place in the block window, they told NDTV Profit on the condition of anonymity.
Jefferies is acting as the merchant banker for the transaction. According to Bloomberg, the expected settlement date for the deal is Feb. 20.
Airtel's promoter, Bharti Telecom, had acquired a 1.2% stake in the company from Indian Continent Investment on Nov. 7, 2024, according to a PTI report.
While the financial details were not disclosed in the filing, the transaction was estimated to be worth Rs 11,680 crore based on Airtel's closing share price. Following this deal, Bharti Telecom holds a 40.33% stake in Airtel, while Indian Continent's holding stands at 3.31%, the report added.
Airtel also reported its third-quarter earnings earlier this month. Its consolidated net profit surged over fourfold sequentially to Rs 14,781.2 crore, beating analysts' estimates. The telecom giant had reported a net profit of Rs 3,593.2 crore in the previous quarter.
Shares of the company closed 2.42% lower at Rs 1675.55 per share on the NSE, compared to a 0.13% advance in the benchmark Nifty. It has risen 46.69% in the last 12 months.
Thirty out of the 35 analysts tracking the company have a 'buy' rating on the stock, four recommend 'hold' and one suggests 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 11.1%.
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