Bharti Airtel Shares Dip Nearly 3% Following Singtel's ₹8,500 Crore Stake Sale via Block Deal

On May 16, 2025, Bharti Airtel's stock experienced a significant decline, dropping nearly 3% during intraday trading. This movement followed reports that Singapore Telecommunications (Singtel) offloaded a substantial stake in the company through a block deal valued at approximately ₹8,500 crore.

Details of the Stake Sale

Singtel, through its investment arm Pastel Ltd, sold around 3.1 crore shares of Bharti Airtel, representing approximately 1.3% of the company's equity. The shares were sold at an average price of ₹1,820 each, which is about a 3.6% discount to the previous day's closing price of ₹1,867.20. The transaction included a 60-day lock-up period, preventing further sales of Bharti Airtel shares by Singtel during this time. 

Prior to this sale, Singtel held a 9.49% stake in Bharti Airtel, amounting to over 57.82 crore shares. 

Market Reaction

Following the news, Bharti Airtel's share price opened lower at ₹1,832.20 on the BSE and touched an intraday low of ₹1,810.10. The stock eventually settled at ₹1,812.50, marking a 2.92% decline for the day. 

The significant volume of shares traded and the discount at which they were sold contributed to the downward pressure on the stock.

Technical Analysis

Anshul Jain, Head of Research at Lakshmishree Investments, noted that Bharti Airtel's share price has rejected the three-week high, with multiple block deals adding to the selling pressure. He indicated that the overall structure is turning bearish, with signs of weakness building. Given the current setup, a dip toward the gap area around ₹1,774 looks likely in the near term. (mint)

Singtel's Strategic Moves

This stake sale is part of Singtel's ongoing strategy to optimize its investment portfolio. In March 2024, Singtel sold a 0.8% stake in Bharti Airtel to GQG Partners for approximately $709 million. These moves are aimed at recycling capital to invest in growth areas such as data centers and IT services, as well as reducing net debt. 

Investor Takeaways

• Short-Term Volatility: The large block deal and subsequent share price decline may lead to short-term volatility in Bharti Airtel's stock.

• Long-Term Prospects: Despite the recent dip, Bharti Airtel's strong fundamentals and market position in the telecom sector may continue to attract long-term investors.

• Monitoring Stake Sales: Investors should keep an eye on any further stake sales by major shareholders, as these can impact stock performance.

Bharti Airtel's nearly 3% share price decline on May 16, 2025, underscores the market's sensitivity to significant stake sales by major shareholders like Singtel. While the immediate reaction has been negative, the company's robust fundamentals may provide support in the longer term. Investors are advised to stay informed about further developments and consider both short-term risks and long-term opportunities.