Bharti Telecom to raise Bharti Airtel stake to 50.1%

Bharti Telecom, promoter firm of Bharti Airtel, will acquire additional 4.62 per cent at market price in the telecom major on or after November 3, as per a regulatory filing.

Bharti Telecom will acquire 184,710,183 equity shares of Bharti Airtel from another promoter firm of the telecom major, Indian Continent Investment Limited (ICIL), at price of Rs 417.35 per share derived with weighted average market price of 60 days trading period, as per the filing.

With this transaction, Bharti Telecom stake in the company will increase 50.1 per cent in Bharti Airtel from 45.48 per cent and ICIL stake will come down to 2.03 per cent.
 

"The Acquirer confirms that the acquisition price would not be higher by more than 25 per cent of the price computed in point 6 (which is Rs 417.35 a unit)," the filing said.

This implies transaction in the books of Bharti Telecom and ICIL will be to the tune of around Rs 7,700-9,600 crore.

People privy to the process, who did not wished to be named, said that as per the filing there will no cash outgo for the Bharti Group for this transaction and is being done for accounting and financial reporting purposes.

Shares of Bharti Airtel closed at Rs 492.8, up by 1.59 per cent, on BSE.