Singapore telecom operator Singtel to invest Rs 2649 cr in Bharti Telecom

Singtel to increase stake in Indian telco giant for $555.6m

Singtel raises stake in Bharti Telecom, invests Rs 2649 crore

Shortly after announcing investment flow by a leading communications provider, shares of Bharti Airtel cheered on BSE Sensex during the early trade session on Monday.

Singtel will make the investment via a preferential allotment of shares, India's biggest mobile-phone opertor said in a stock-exchange filing.

Singtel will be allotted up to 85.45 million new equity shares in Bharti Telecom at 310 rupees apiece, which will raise Singtel's stake in Bharti Telecom by up to 1.7 per cent for a total consideration of around 26.5 billion rupees (S$555.6 million).

Singapore-based telecom operator Singtel will invest Rs 2,649 crore in Bharti Telecom, increasing its stake in the Indian telecom major to 48.9%. At present the Singaporean firm holds 47.17% stake in Bharti Telecom.

Singtel now holds 47.17% stake in Bharti Telecom while Bharti Enterprises continues to hold over 50% stake in Bharti Telecom, it said.

The investment by Singapore Telecommunications within a span of 23 months shows confidence in the company and Indian telecom sector, said the company.

"Airtel shares a almost two-decade-long relationship with Singtel, which has only become stronger over the years". Airtel is India's largest telecommunications company.

Recently, the company had promised a whopping Rs 25,000 crore investment in capital expenditure in FY18.

As of December 2017, Airtel's consolidated debt stood at Rs 91,714 crore.

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