Bharti Airtel sells stake in Bharti Infratel for Rs3,325 crore

Bharti Airtel sells stake in tower arm Bharti Infratel for Rs 3,325 crore to reduce debt

Bharti Airtel sells stake in tower arm Bharti Infratel for Rs 3325 crore to reduce debt

In a statement to exchanges, Bharti Airtel said, "The allocation was done to global investors, fund managers and long only funds, including many repeat investors".

Leading telecom operator, Bharti Airtel on Tuesday announced that it sold over 83 million shares of its tower arm Bharti Infratel, which are worth Rs. 3,325 crores ($510 million).

Where Infratel share price saw selling pressure, Bharti Airtel's stock price remained positive trading at Rs 499.05 up 0.20% on BSE.

The consolidated debt of the Sunil Mittal-owned company was Rs 91,480 crore as on September 2017.

Following the closure of this transaction, Bharti Airtel and its wholly owned subsidiaries together have an equity holding of 53.51 per cent in Bharti Infratel. The company sold the shares at Rs 400.60 a piece, which is 3.6% lower than Monday's closing price of the Bharti Infratel stock on the National Stock Exchange. Airtel net profit for the second quarter was whittled down to a mere Rs 343 crore from a robust Rs 1,461 crore in the July - September quarter of 2016-17.

Like other incumbent operators, the country's largest telecom company has been locked in a fierce tariff war with newcomer Reliance Jio in the mobile telephony market.

Bharti Airtel has consistently said that it plans to reduce its stake in Bharti Infratel.

J.P. Morgan, UBS and Goldman Sachs were joint placement agents for the transaction. Bharti Infratel and Vodafone India hold 42 per cent stake in Indus Towers and rest is held by Idea Cellular.

With this movement, the share price of Bharti Infratel tumbled by almost 4% on stock exchanges.

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