Bharti Airtel shares will be sold
Singapore Telecommunications Limited is preparing to sell its 0.8% stake in Bharti Airtel through a block deal worth about Rs 10,300 crore. The minimum price of this deal has been kept at Rs 2,030 per share, which is about 3.1% less than the previous closing price of Airtel.
Singtel is gradually reducing its stake in Airtel to restructure its regional business and raise capital. The company wants to focus on its core business. In May this year, the company had sold a stake worth 2 billion Singapore dollars in Airtel. Earlier in 2022 and 2024 also, the company has raised a total of 3.5 billion Singapore dollars by selling shares of Airtel.
This deal happened after the strong results of Airtel.
This sale is happening at a time when Bharti Airtel has shown better performance in the second quarter. The company’s consolidated EBITDA grew 6% quarter-on-quarter due to better-than-expected growth in wireless services in India and Airtel Africa.
The ARPU of the company was also higher than expected. Airtel’s free cash flow also remained strong and reached Rs 14,600 crore. The company also said that its capex in FY 2026 will be less than last year, which will lead to more cash savings. Analysts believe Airtel’s focus on premium services and a possible tariff hike in December 2025 could propel the company’s earnings and cash flow over the coming two years. According to Motilal Oswal, Airtel can generate free cash flow of about Rs 1 lakh crore in FY26-FY27.
There is still scope for good growth
Motilal Oswal in its report has given a “buy” rating to Airtel with a target price of Rs 2,365. According to him, the company’s revenue and EBITDA can grow at an average rate of 15% and 18% every year between FY25 to FY28. Tariff increase, increasing demand for broadband services and strong performance of Airtel Africa will help in this. The report also said that despite 33% year-on-year rise in the stock, Airtel’s risk-return balance still remains attractive. This is much better than the 8% return of Nifty 50.