Singtel Group, a telecommunications company based in Singapore, decided to trim a major stake in Bharti Airtel (NSE: BHARTIARTL). As Singtel trims Airtel stake worth about ₹12,900 crore, one can still see the Bharti Airtel share price going up in today’s trading session. Let us know the reason for such a sell-off.
Singtel Trims Airtel Stake To Finance 5G Roll-out
The Singapore Telecommunications Limited recently announced that it would sell Airtel shares worth crores of rupees, which would account for about 198 million shares. Before the actual sale of the stake, Singtel held an effective share of 31.4% in the Indian telecom company. After the sale, the stake is set to lower to 29.7%.
The company mentioned that the decision to sell Airtel shares was taken to finance its 5G operations. Moreover, it was a move to aid the organisation’s capital recycling strategies and initiatives for capital management. In addition, Singtel is wanting to optimise its investment portfolio.
The Singaporean telecom company mentioned that this stake would be sold to Bharti Telecom Limited, which is a joint venture with Bharti Enterprises Limited. The Airtel stake is set to be sold and transferred before November 23, 2022.
Mr Sunil Mittal, Bharti Enterprises’ Chairperson said:
Bharti Airtel Share Price Today
The BHARTIARTL stock was in the ‘green’ today even after the aforementioned news was out. This might be due to the fact that the share is not to be sold to any outsider company. The stock was up by 0.79% and traded at ₹744.60 (gaining 5.85 points) at the time of reporting on Thursday, August 25, 2022. The total traded value of the stock stood at ₹31,601.01 lacs. The trade volume of shares stood at 42,32,600.