Airtel Stock Plummets as Singtel Offloads $1 Billion in Block Deal

Mumbai: Airtel Stock Plummets as Singtel Offloads $1 Billion in Block Deal

Bharti Airtel’s stock nosedived on Friday following a block deal by Singapore telecom giant Singtel, which sold approximately 4.76 crore shares. Valued at around $1 billion, the deal triggered a nearly 3% drop in Airtel’s share price, drawing significant market attention.

Block Deal Details 📊

Singtel’s subsidiary, Pastel, offloaded 4.76 crore equity shares at a floor price of ₹1,800, a 3.6% discount from Thursday’s closing price of ₹1,867. This reduces Singtel’s stake in Airtel from 29.5% to 28.3%, aligning with its capital management strategy.

Stock Market Impact 📉

Airtel’s shares fell to ₹1,817.50 on the BSE, reflecting a 2.6% loss, amid heavy trading volumes. The company’s market capitalization stood at ₹10.36 lakh crore, signaling investor caution due to the large-scale share sale.

Singtel’s Strategy 💡

The block deal supports Singtel’s efforts to fund 5G expansion and digital infrastructure by divesting non-core assets. Previously, in 2022 and 2024, Singtel raised S$3.5 billion through similar Airtel stake sales, reinforcing its financial restructuring.

Airtel’s Financial Performance 💰

In Q4 FY 2024-25, Airtel’s consolidated net profit surged 432% to ₹11,022 crore, driven by tariff hikes and one-time tax benefits. Revenue grew 27% to ₹47,876 crore, with ARPU rising 17% to ₹245, up from ₹209 the previous year.

Analyst Perspectives 🧑‍💼

Despite short-term volatility from the block deal, analysts remain bullish on Airtel due to its robust financials and 5G rollout. Trendlyne data shows 36 analysts recommending a ‘Buy’ with an average target price of ₹1,976, suggesting strong long-term potential.

Business Expansion 🌐

Airtel has partnered with Apple to offer Apple TV+ and Apple Music services, enhancing its digital portfolio. It also launched IPTV services across 2,000 Indian cities, boosting customer engagement and market reach.

Block Deal Snapshot 📋