Telecom major Bharti Airtel Limited on Monday announced that Singapore Telecommunications Limited ("Singtel"), a communications and ICT solutions group, and a long-term partner of Airtel, will invest Rs. 2,649 crores in Bharti Telecom Limited, the promoter company of Airtel through preferential allotment of shares.
The transaction is subject to the shareholders' approval of Bharti Telecom, and the funds raised will be used towards debt reduction.
Singtel currently holds 47.17 percent stake in Bharti Telecom. With this investment, Singtel's total stake (along with its affiliates) will increase to 48.90 percent, while Bharti Enterprises will continue to hold over 50 percent stakes in Bharti Telecom.
The investment comes within 23 months of Singtel's participation in Bharti Telecom's Right Issue of Rs. 2500 Crores, which was completed in February 2016.
"Airtel shares a nearly two-decade-long relationship with Singtel, which has only become stronger over the years. The fresh round of investment highlights the confidence of Singtel in Airtel and the increased attractiveness of the Indian telecoms sector following the recent consolidation," said Deven Khanna, Managing Director, Bharti Telecom.