Bharti Airtel shares surge on stake sale buzz

Bharti Telecom, the promoter and holding company of Bharti Airtel, will pick up 4.62 per cent stake in India's largest telecom operator.

In a filing in the National Stock Exchange Monday, the promoter firm said that it will acquire 184,710,183 equity shares at Rs 417.35 a piece.

The Airtel stock ended 1.59 per cent higher at Rs 492.80 on the BSE.

The share value decided is the weighted average price of Bharti Airtel’s stocks in the last 60 days. The date of acquisition is November 3 or after that.

The statement from holding company added that the amount paid will not be higher than 25% of the compounded price per share which in turn puts the deal value roughly between Rs 7000-9000 crore.

The Mittal family, are promoters of both Bharti Telecom and Bharti Airtel Ltd. They own 51% stake in Bharti Telecom and 30% effective stake in Airtel.

Post this deal, their share holding in Bharti Airtel will increase but the largest share holder in the operator will continue to be Singapore Telecommunications Ltd (Singtel), which is the largest shareholder in Airtel with 36.27% stake.