Bharti Airtel promoter to sell stake of Rs 7,200 crore through a block deal

Bharti Airtel’s shares will witness a major block trade on Wednesday with its main promoter Indian Continent Investment Ltd (ICIL) to sell around 3.43 crore shares, as per the terms of the deal. The transaction is routed through a block deal window.The sale represents approximately 0.56% of Airtel’s equity and is valued at approximately $806 million (Rs 7,195 crore) at the offer price. At the floor price of Rs 2,096.7 per share, the offer marks a 3% discount to Airtel’s last closing price of Rs 2,161.6 on the NSE.

As of September 2025, ICIL holds about 1.48% stake in the telecom company. The latest transaction would take the promoter entity’s stake below 1% in the company.Post the deal, ICIL will be subject to a 90-day lock-up on the remaining holding company. Goldman Sachs (India) Securities is acting as sole placement agent for the sale, according to the term sheet.

Earlier this month, Singapore Telecommunications Ltd (Singtel) sold an approximately 0.8% stake in the company. The stake sale was part of Singtel’s ongoing efforts to restructure and optimize its interests in regional telecom companies.

The block deal follows the robust second-quarter performance of Bharti Airtel, which reported a 6% quarter-on-quarter increase in consolidated EBITDA, driven by better-than-expected growth in its wireless businesses in India and Airtel Africa. The company’s average revenue per user (ARPU) – a key measure of profitability – rose above expectations, while consolidated free cash flow remained healthy at Rs 14,600 crore. Bharti also reiterated that its capital expenditure in India (excluding Indus Towers) for FY26 will further decline from FY25 levels, improving cash generation. Analysts say Bharti’s premiumization strategy and a likely tariff hike in December 2025 could significantly boost revenues and free cash flow over the next two years. According to Motilal Oswal estimates, the company is expected to generate Rs 1 lakh crore in free cash flow between FY26 and FY27.

Analysts expect ARPUs to increase further in the coming quarters, driven by strong domestic operations and improvement in Africa.

Motilal Oswal in its latest note maintained a buy rating on Bharti Airtel with a target price of Rs 2,365, citing continued strength in both the domestic and African markets. The brokerage expects Bharti’s revenue and EBITDA to grow at a CAGR of 15% and 18% respectively in FY25-28, helped by tariff increases, growth in broadband services and strong performance in its African operations.

The company also noted that Bharti Airtel’s risk-reward ratio remains attractive despite the stock’s 35% rally this year, outperforming the Nifty’s 9% gain. Possible triggers include a rate review, which could strengthen the company’s balance sheet and earnings prospects.

On Tuesday, Airtel shares closed 0.46% higher at Rs 2160.7 on BSE.