Singapore’s Singtel has sold a 1.2% stake in Bharti Airtel, raising $1.54 billion through its unit, Pastel. The shares—about 71 million—were sold at ₹1,814 apiece, slightly below Airtel’s market rate, giving Singtel an estimated gain of around S$1.4 billion. This move drops Singtel’s holding in the Indian telecom giant from 29.5% to 28.3%.
So why is Singtel selling?
According to the company, the decision is part of a broader strategy to streamline its portfolio and focus on long-term returns. In plain English: “Let’s cash in a bit now, while the going’s good.”
They’ve done it before too—offloading 3.3% to Bharti Telecom and 0.8% to GQG Partners in earlier years, raising S$3.5 billion. That money helped fund their 5G push, data centres, and other future-facing bets.
Singtel’s Group CFO Arthur Lang put it simply:
“We’re crystallising value at a strong price but staying invested.”
Airtel Still Shines
Even as Singtel cuts back slightly, Airtel’s fundamentals are strong. The company just reported a 4.32% rise in net profit year-on-year, hitting ₹11,022 crore for Q4 FY25.
This was driven by its performance in India, where demand for data, enterprise services, and digital payments continues to grow.
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Who bought the shares?
Domestic mutual funds and international long-only funds jumped at the chance. The private placement was oversubscribed, a clear sign that big money still believes in Airtel’s future.
Yes, the sale was priced at a 2.85% discount, but that’s standard for bulk deals. And Singtel’s remaining 28.3% stake is still worth a hefty S$4.8 billion.
Big Picture: It’s Not About Exit, It’s About Options
Singtel isn’t walking away from Airtel. After two decades, the bond is still strong. But this move gives them flexibility—capital to spend elsewhere, and room to breathe in a fast-changing telecom world.
In a market full of buzzwords, here’s the simple truth: cash talks, even for long-term lovers.
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