BTL’s stake sale in Airtel more a deleveraging exercise, sector fundamental attractive: Analysts

The secondary equity sale by promoter company Bharti Telecom Ltd (BTL) in Airtel is more of a deleveraging exercise and the sector fundamental remains attractive, Credit Suisse has said in a latest note. Bharti Telecom is raising USD 1 billion (almost Rs 7,600 crore) by selling shares in telecom firm Bharti Airtel through a block deal on Tuesday at Rs 558 apiece, to become debt-free. Bharti Telecom plans to dilute 2.75 per cent stake through the secondary placement.

“We see this stake sale by BTL a positive as it will make the promoter entity debt-free, in turn improving the flexibility for any support to Airtel in future,” IIFL Securities said. The promoter group will continue to hold 56.3 per cent in Airtel, it said.