Why Did Bharti Airtel Shares Plummet After Singtel's Block Sale?
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Synopsis
The recent decline in Bharti Airtel shares stems from a block sale involving Singtel, where a significant portion of shares was traded at a discount. This sale reflects ongoing market dynamics and investor reactions, highlighting the volatility in the telecom sector. Dive into the details of this transaction and its implications for Airtel's stock performance.
Key Takeaways
- Bharti Airtel shares dropped by 4.48% due to a block sale.
- Singtel sold 0.8% of its stake in the company.
- The transaction was valued at Rs 10,300 crore.
- Airtel's profit rose by 89% year-on-year for Q2 FY26.
- Shares gained 25.34% year-to-date.
Mumbai, Nov 7 (NationPress) The shares of Bharti Airtel experienced a decline of approximately 4.48 percent during intra-day trading on Friday, falling to a low of Rs 2,001. This drop was attributed to the trading of 5.1 crore shares in the block deal window, with Singapore Telecommunications (Singtel) identified as the probable seller.
The transaction was executed at a base price of Rs 2,030 per share, which represents a 3.1 percent discount compared to Airtel's last closing price of Rs 2,095.
According to multiple reports, Singtel was set to divest about 0.8 percent of its holdings in the telecom company.
The deal is said to be valued around Rs 10,300 crore, based on the term sheet, indicating that Singtel has engaged JP Morgan India as the exclusive broker for the block deal, reaching out to various institutional investors to facilitate the transaction.
This marks the second instance of Singtel selling off Bharti Airtel shares, following a previous sale of 1.2 percent of its stake for approximately $2 billion at Rs 1,814 per share in May this year. After that sale, Airtel's share price surged by about 15 percent to Rs 2,095.
Over the past month, Bharti Airtel shares have appreciated by Rs 71.00, equating to a 3.68 percent increase, and have risen by Rs 404, or 25.34 percent, year-to-date.
In its latest report, Bharti Airtel posted an impressive 89 percent year-on-year (YoY) surge in consolidated net profit for the July-September quarter of the current fiscal year (Q2 FY26). The company's profit jumped to Rs 6,791 crore, up from Rs 3,593 crore in the same quarter last year, as disclosed in its stock exchange filing.
The consolidated revenue from operations saw a YoY increase of 25.7 percent, reaching Rs 52,145 crore, compared to Rs 41,473 crore in Q2 FY25, largely driven by robust performance in its mobile and data segments.
Point of View
It is vital to approach the situation with a balanced perspective. The decline in Bharti Airtel shares due to Singtel's block sale underscores the complexities of the telecom market. While short-term fluctuations may alarm investors, it is essential to consider the broader context of Bharti Airtel's strong financial performance and growth potential.
NationPress
07/11/2025
Frequently Asked Questions
What caused the drop in Bharti Airtel shares?
The decline was primarily due to a block sale involving Singapore Telecommunications, which traded 5.1 crore shares at a discount.
How much did Singtel offload in this transaction?
Singtel offloaded approximately 0.8 percent of its stake in Bharti Airtel.
What is the significance of this transaction for Bharti Airtel?
This sale reflects investor sentiment and market dynamics that could affect Airtel's stock performance in the short term.
How has Bharti Airtel performed financially?
Bharti Airtel reported an 89 percent year-on-year increase in consolidated net profit for Q2 FY26, indicating strong financial health.
What was the impact of previous sales by Singtel on Airtel's stock?
Following a previous sale in May, Airtel's share price rose by about 15 percent.
