Singtel's Pastel to Sell 0.8% Stake in Bharti Airtel via Rs 8,568 Crore Deal
| 2025-05-15
Singtel Subsidiary Pastel to Sell Partial Bharti Airtel Stake in Major Block Deal
Singtel's unit Pastel plans to offload 0.8% of its Bharti Airtel stake in a Rs 8,568 crore block deal at a 3.6% discount to market price.
A subsidiary of Singapore-based telecom company Singtel is set to sell a 0.8% stake in Indian telecom operator Bharti Airtel through a block deal valued at ₹8,568 crore ($1.03 billion), according to information from market sources.
The transaction, to be executed by investment bank JP Morgan, involves Pastel Ltd, a wholly owned unit of Singtel, offering shares at a floor price of ₹1,800 each. This represents a 3.6% discount to Bharti Airtel’s last closing price of ₹1,863.10 on India’s National Stock Exchange (NSE).
Minor Reduction in Holding
Pastel currently holds a 9.49% stake in Bharti Airtel. The proposed sale would reduce that shareholding to approximately 8.69%, indicating a relatively modest trimming of its position.
Despite the planned divestment, Singtel has not publicly stated a strategic shift in its long-standing investment in Bharti Airtel, one of India’s largest telecom service providers. Market analysts suggest the move could be part of routine portfolio rebalancing or capital-raising efforts.
Lock-In Period Applies
As part of the deal terms, a 60-day lock-in clause has been applied, restricting Pastel from selling further shares in Bharti Airtel during this period. Such provisions are commonly used in block deals to prevent sudden market fluctuations or price pressure caused by subsequent offloading of shares.
The sale is being conducted through the block deal mechanism, a transaction route used by large institutional investors to sell substantial volumes of shares without impacting the open market.
Market Reaction and Trading Context
On the day prior to the announcement, Bharti Airtel’s share price rose 1.58%, closing at Rs 1,863.10. The proposed sale price of Rs 1,800 per share signals a 3.6% markdown from that level. However, such pricing is not uncommon in large block trades, as it helps ensure full subscription of the offering within a short window.
The block deal is expected to take place shortly, although specific timelines have not been publicly disclosed.
Strategic Partnership Background
Singtel has been a key investor in Bharti Airtel for nearly two decades, initially forming a partnership through direct equity and strategic alliances. Bharti Airtel, headquartered in New Delhi, is one of India’s largest telecom operators by subscriber base and revenue, with operations across 18 countries in Asia and Africa.
Singtel, officially known as Singapore Telecommunications Limited, is a major Asian telecommunications group with interests in mobile, broadband, and digital services across the region. The company has previously stated its intent to optimise capital allocation across its portfolio, including its holdings in regional associates.
In August 2022, Singtel announced plans to monetise up to Rs 12,000 crore worth of assets in Bharti Airtel over two years as part of a broader capital recycling initiative.
Capital Market Trends
Large shareholders in Indian blue-chip firms often use block deals to adjust their holdings in response to financial planning needs or regulatory considerations. These transactions typically involve significant discounts compared to prevailing market prices and are facilitated by investment banks or brokers.
Bharti Airtel has been a key player in India’s ongoing 5G rollout and digital expansion, factors that have helped sustain investor confidence despite heightened competition from rivals such as Reliance Jio and Vodafone Idea.
Analysts will be closely watching the deal’s outcome and any subsequent filings or statements from Singtel for insights into the company’s long-term strategy regarding its Airtel investment.
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