Singapore Telecommunications trims stake in Indian telecom major to fund digital investments
Singtel Offloads 0.8% Stake Worth $1.16 Billion
Singapore Telecommunications Ltd. (Singtel) announced on Friday that it has sold a 0.8% stake in India’s Bharti Airtel for about S$1.5 billion ($1.16 billion). The sale is part of Singtel’s effort to streamline its portfolio and focus on high-growth digital infrastructure and service ventures.
According to the company, its investment arm, Pastel Ltd., sold 51 million shares of Bharti Airtel at ₹2,030 ($23.10) per share, which is roughly a 3.1% discount to the Indian telecom operator’s closing price on Thursday. The transaction occurred through private placement to institutional investors, showing strong demand for Airtel’s shares among global funds.
Strategic Move Under S$9 Billion Asset Recycling Plan
The divestment aligns with Singtel’s S$9 billion mid-term asset recycling program, which aims to unlock value from mature investments and reinvest in new technologies. The program is meant to improve shareholder returns while strengthening Singtel’s balance sheet and funding new growth opportunities.
Singtel, Southeast Asia’s largest telecom operator, has been gradually reducing its holdings in Bharti Airtel over the past few years. Its stake now stands at 27.5%, down from 31.4% in 2022, as it continues to adjust its investment portfolio.
A spokesperson for Singtel stressed that the sale is part of a capital management initiative rather than a change in its long-standing partnership with Airtel. Singtel has been a key investor in Bharti Airtel since 2000, helping the Indian telecom grow and maintain its market position.
Bharti Airtel’s Strong Growth Supports Divestment Gains
Bharti Airtel has experienced significant growth in recent years, with its shares quadrupling in value since the end of 2019. This increase has come from rising average revenue per user (ARPU), strong subscriber growth, and expanded digital services.
This rise in market value has allowed Singtel to achieve notable capital gains from its long-term investment. The latest sale is expected to provide Singtel with an estimated gain of S$1.1 billion, boosting investor confidence in the company’s restructuring strategy.
More than 55 million Airtel shares reportedly changed hands during the trading session through block deals, according to LSEG data.
Market Reaction and Outlook
After the announcement, Singtel’s shares rose as much as 5% in early trading, stabilizing around S$4.61 and later rising to S$4.65. Meanwhile, Bharti Airtel’s stock dipped about 4.5%, reflecting short-term profit-taking after the large trade.
Industry analysts see Singtel’s move as a smart step toward optimizing its capital structure while keeping exposure to one of the fastest-growing telecom markets in the world.
With strong fundamentals at Bharti Airtel and a clear plan for reinvestment in digital ventures, Singtel’s latest divestment shows a thoughtful, future-focused strategy to remain competitive in the changing global telecom landscape.
Exchange rates:
$1 = 1.2942 Singapore dollars
$1 = 87.8950 Indian rupees
