Bharti Telecom, parent Company of Bharti Airtel, is planning to raise almost $1 billion by selling shares in the mobile phone operator through a block deal on Tuesday at ₹ 558 a unit. With the stake sale, the promoter plans to dilute 2.75% stake in the Company. With the current sale the promoter’s shareholding in the Company will come down to 56.23%.

What the deal means:

The proposed stake sale will ease the debt burden of the Company, which going forward will help improve the Company rating. At the promoter level, the debt levels will turn zero. This would also provide room for further stakeholder support needed for the Company when needed. With tariff increase in December, expected moderation in capital expenditure on the Company’s Indian Mobile Operations and anticipation of stronger earnings, the outlook looks positive for the Airtel.

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