Indian telecom major Bharti Airtel announced on Tuesday that it has completed a secondary share sale in Bharti Infratel via its wholly-owned subsidiary, Nettel Infrastructure Investments Limited for a total of Rs 3,325 crore. In a press release, Bharti Airtel said, “Bharti Airtel Limited via its wholly owned subsidiary, Nettle Infrastructure Investments Limited , today announced the successful divestment of 83 million shares of its subsidiary Bharti Infratel Limited through a secondary share sale in the stock market.”
According to the press release,the sale was for a total consideration of over Rs 3,325 crore and was executed at a price of Rs. 400.6 per share, representing a discount of 3.6% from yesterday’s closing price. “The allocation was done to global investors, fund managers and long only funds, including many repeat investors. Led by healthy investor appetite, the deal was upsized by over 25%,” said the release. In the same release, Bharti Airtel said that the proceeds will primarily be used for reducing debt from its books. After the transaction, Bharti Airtel and its wholly owned subsidiaries together have an equity holding of 53.51% in Bharti Infratel.
Earlier this month, Bharti Airtel’s fiscal second quarter financial results beat most analyst estimates even as its consolidated adjusted net profit plunged 77% and revenue fell 10.4% on-year on an underlying basis. India’s largest telecommunication services company’s Jul-Sep adjusted net profit fell to Rs 343 crore from Rs 1,461 crore in the same quarter a year ago, as competitive pressure from Reliance Jio continued to weigh, leading to a sharp drop in its India revenues. Bharti Airtel’s aggressive tariff offers to counter relentless competition from Reliance Jio hurt earnings, and the ongoing tariff war in the telecommunication sector led to a sharp fall in the money earned per customer.