Singtel will increase its equity stake in Bharti Telecom, the promoter company of Airtel, by investing Rs 2,649 crore through preferential allotment of shares.
Airtel, India’s largest telecom operator, will utilize the funds for debt reduction. Singtel is making further investment in Airtel promoter at a time when the Indian telecom industry is facing worst financial conditions in the history.
The Singapore-based Singtel will increase its stake in Bharti Telecom to 48.90 percent from the present 47.17 percent. Bharti Enterprises, promoted by Sunil Mittal and family members, continues to hold over 50 percent stake in Bharti Telecom.
Airtel said the fresh round of investment highlights the confidence of Singtel in Airtel, and the increased attractiveness of the Indian telecoms sector following the recent consolidation. Earlier, Singtel participated in Bharti Telecom’s right issue of Rs 2,500 crore in February 2016.
Deven Khanna, managing director of Bharti Telecom, said: “Airtel shares a nearly two decade-long relationship with Singtel, which has only become stronger over the years.”
