Qatar Foundation to sell 5% in Airtel

The Qatar Foundation Endowment is likely to sell up to 199.9 million shares, comprising a 5 per cent stake, in Bharti Airtel on Wednesday at about Rs 9,500 crore.

The foundation had acquired the stake in June 2013 at Rs 6,796 crore.

According to sources, Three Pillars Pte, Singapore, an affiliate of the Qatar Foundation, is likely to sell the shares in the price range of Rs 473-490 each.

UBS Securities India is the placement agent for the sale.

The share price of Airtel surged to new highs recently as the telecom sector is approaching stabilisation with Reliance Jio increasing tariffs. The stock has been going up despite the company reporting a drop in quarterly profits.

The stock closed at Rs 514.35 on the Bombay Stock Exchange on Tuesday.

CLSA upgraded the stock to ‘buy’ from ‘underperform’, and the target price to Rs 637 from Rs 430, saying consolidation in India and the Africa turnaround were “reviving Bharti’s long-term growth”.