Bharti Airtel gains 4% as Singtel plan to invest Rs 26.49 billion

Bharti Airtel gained 4% to Rs 439 on BSE after the company announced that Singapore Telecommunications (Singtel) will invest Rs 26.49 billion in Bharti Telecom through preferential allotment of shares. Bharti Telecom is the promoter company of Bharti Airtel.

The transaction is subject to the shareholders’ approval of Bharti Telecom. The funds raised will be used towards debt reduction, Bharti Airtel said in a press release.

With this investment, Singtel’s total stake (along with its affiliates) in Bharti Telecom will increase to 48.90%. Singtel currently holds 47.17% stake in Bharti Telecom. Bharti Enterprises continues to hold over 50% stake in Bharti Telecom.