Warburg sells 3.2% in Bharti for $306 mn

Sale was done at a 2.4% discount to the Bharti closing share price on Tuesday.

Private equity firm Warburg Pincus today sold a 3.2 per cent stake in Bharti Tele-Ventures for $306 million (over Rs 1,300 crore).

The block sale, India's largest on record and the second in six months by Warburg in Bharti, was done at a 2.4 per cent discount to the Bharti closing share price on Tuesday.

The news initially pushed down Bharti shares 2.9 per cent, but the stock recovered later after the government lifted the cap for foreign investment in the industry.

"Warburg has sold approximately 3 per cent or 61-62 million shares," Akhil Gupta, joint managing director of Bharti, said.

The sale to a clutch of foreign funds means a big profit for Warburg, which still owns about 12 per cent, bankers familiar with the transaction said. Warburg officials declined comment.

Since its listing in January 2002, the Bharti stock has jumped some seven-fold. In August, Warburg sold a 3.35 per cent stake for $208 million.

In Wednesday's sale, trade details from the Bombay exchange in the morning showed two block deals for 55 million shares, or about 2.9 per cent of Bharti, changed hands in opening deals.

Ravi Kapoor, executive vice-president of DSP Merrill Lynch, which executed the deal with the Indian unit of Morgan Stanley, said the combined value of the sales set an Indian market record.

Later, there were more deals, taking the total to some 62 million shares at an average price of Rs 217 a share. Bharti shares ended down 1.5 per cent at Rs 219.05 on a weaker Bombay market.

Foreign connection

---

• The block sale is India's largest on record and is the second in six months by Warburg in the top listed mobile company
• The sale to a clutch of foreign funds means a big profit for Warburg, which still owns about 12 per cent, bankers familiar with the transaction said
• The stock has jumped some seven-fold since listing in January 2002
• In August, Warburg had sold a 3.35 per cent stake for $208 million