Bharti, Bharti Airtel’s promoter company, sold a 2.75% stake in Bharti Airtel. Investors bought the stock on Tuesday. The sale was through an accelerated book-building process in the secondary market.
More than 50 investors were distributed the stock, with the top 10 getting 2/3 of overall distributions.
The total sales proceeds exceeded Rs 8433 crores. The investor pool was a healthy mix of investors, long-only and hedge-fund investors across continents. Investors included accounts from India, Asia, Europe and the USA.
However, even after the transaction, Bharti Group and Singtel own the majority stake of 56.23%.
The wide, strong and positive response Airtel received from the diverse mix of investors demonstrated competitive strength and long-term prospects of Bharti Airtel. Even during the harsh global economic conditions, investors showed a keen interest in the company.
Bharti Telecom is en-route to becoming a zero-debt company. If this happens, the company shall have much stronger financial flexibility. In addition, it shall have an increased capacity to provide additional shareholders support as-and-when desired by Bharti Airtel.