Promoters to sell 3.7% in Bharti Infratel for Rs 2550cr

Isaac Cain
August 8, 2017

The share divestment was done through Nettle Investments, a wholly owned subsidiary of Bharti Airtel.

Block deal is a trade, with a minimum quantity of 5 lakh shares or minimum value of Rs 5 crore, executed through a single transaction, on the special block deal window.

The move is being seen as a step by Bharti Airtel to deleverage itself.

Following the latest stake sale, Bharti Airtel and its wholly owned subsidiaries together have an equity holding of 58% in Bharti Infratel. UBS and JP Morgan were joint placement agents for the transaction.

Further the company added, "The allocation was done to global tower company investors, fund managers and long only funds, including many repeat investors".

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Following the development, the mobile infrastructure company declined 4% to hit a low of Rs 378.50 on the Bombay Stock Exchange (BSE).

A CNBC-TV18 report Monday, quoting sources, said Airtel would sell stake in its telecom tower subsidiary Bharti Infratel to institutional investors.

Net debt of Bharti Airtel stood at Rs 87,840.4 crore in Q1 FY18. Bharti Airtel and Nettle jointly hold 61.65 per cent in Bharti Infratel.

However, shares of Bharti Infratel (down 3.67 per cent) reacted negatively to the development and cracked almost 4 per cent in Tuesday's trade.

The large-cap company has equity capital of Rs 1849.61 crore.

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