Nov 14, 2017 11:51 AM IST | Source:

Bharti Infratel falls 5% after Airtel cuts stake in company through secondary share sale

Bharti Airtel will primarily use the proceeds from this sale to reduce its debt.

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Tower infrastructure company Bharti Infratel share price fell as much as 4.77 percent on Tuesday after the parent company reduced its equity stake in the company through secondary share sale.

"Bharti Airtel via its wholly owned subsidiary, Nettle Infrastructure Investments today announced the successful divestment of 8.3 crore shares of its subsidiary Bharti Infratel through a secondary share sale in the stock market (NSE, BSE)," the company said in its filing.

The sale was for a total consideration of over Rs 3,325 crore (USD 510 Million) and was executed at a price of Rs 400.6 per share, representing a discount of 3.6 percent to the previous day’s closing price.

"The allocation was done to global investors, fund managers and long only funds, including many repeat investors," Airtel said, adding led by healthy investor appetite, the deal was upsized by over 25 percent.

Bharti Airtel will primarily use the proceeds from this sale to reduce its debt.

Following the closure of this transaction, Bharti Airtel and its wholly owned subsidiaries together have an equity holding of 53.51 percent in Bharti Infratel.

JP Morgan, UBS and Goldman Sachs were joint placement agents for the transaction.

At 11:40 hours IST, the stock price was quoting at Rs 398.85, down Rs 12.25, or 2.98 percent on the BSE.
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