Bharti Airtel promoter to sell shares worth $1 billion

The promoter of Bharti Airtel Ltd will sell shares worth $1 billion in the mobile operator through a block deal on Tuesday, two people said, requesting anonymity.

The promoter, Bharti Telecom Ltd, will sell a 2.75% stake in the company at a floor price of ₹558 per share, the first person said. The floor price is at a discount of around 6% to Bharti Airtel’s stock price. On Friday, the company’s shares ended at ₹593.20 on the NSE, falling 0.27% from the previous day’s close. Monday was a market holiday.

“This will help in cleaning up debt and, post-deal, debt will be zero at the promoter level. This debt was taken to buy a stake in Airtel,” the second person said, adding that the stake sale will also create capacity at Bharti Telecom for further capital or shareholder support for the operator.