InvestorQ : Will the selling of Bharti Airtel shares by the promoters benefit the shareholders of Airtel?
Priyanka N made post

Will the selling of Bharti Airtel shares by the promoters benefit the shareholders of Airtel?

Answer
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NISHA Nayak answered.
4 months ago


Tuesday 26 May saw a huge block deal in the Bharti Airtel counter; something that was announced by the promoters in advance. Bharti Telecom, the holding company of Bharti Airtel, sold 15 crore shares of Bharti Airtel. The major buyer was once again SocGen, which picked up 3.53 crore shares. Even in the Hindustan Unilever block sold by Glaxo, SocGen was the major buyer. Bharti Airtel shares have rallied nearly 50% in the last 2 months on improved market share and better ARPU metrics. The sale of shares will enable Bharti Telecom (the holding company) to pare its overall debt of Rs.8500 crore. This will be a major positive for Bharti Airtel stock because rating agencies have raised some serious concerns over the financial stability of promoter holding companies after the fiasco we saw in the case of Zee Entertainment and Yes Bank. This should be positive for Airtel too.