Bharti Airtel Shares Drop 4% as Singtel Sells ₹10,300 Crore Stake in Block Deal; Supply Overhang Seen Near-Term

Mumbai | November 7 – Bharti Airtel shares slipped in opening trade on Friday after a large block deal of nearly 5.1 crore shares hit the market, placing the stock under short-term supply pressure. The shares were reportedly sold at a floor price of ₹2,030, around 3% below the previous close, valuing the transaction at about ₹10,300 crore. The stock fell over 4% to an intraday low of ₹2,005, before stabilising with volumes more than twice the daily average.

Singtel Continues Gradual Stake Trimming

Market participants indicate that Singapore Telecommunications (Singtel), acting through subsidiary Pastel Ltd, is the likely seller in this trade, reducing its stake by around 0.8%. The transaction is consistent with Singtel’s ongoing strategy of unlocking capital from mature holdings and allocating funds toward digital infrastructure and high-growth regional assets.

Singtel has gradually pared its stake in Airtel over recent years. In May 2025, it divested 1.2% via private placement, and earlier stake sales between 2022 and 2024 generated over S$3.5 billion. Despite the periodic stake sales, Airtel remains a strategic asset in Singtel’s portfolio, supported by India’s strong data consumption and telecom expansion cycle.

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Operational Momentum Intact

The stock reaction comes against the backdrop of strong quarterly performance from Bharti Airtel.

Outlook

Shares of Bharti Airtel have gained around 27% year-to-date, outperforming the broader market. The current decline is viewed as transaction-driven rather than reflective of changing fundamentals.

PL Capital maintains an ‘Accumulate’ stance on Bharti Airtel, citing stable ARPU expansion, a premium user mix, strong balance sheet discipline, and improving cash generation. The firm has a target price of ₹2,259, implying room for medium-term upside once the near-term supply overhang from the block deal absorbs.

Bottom Line

The stake sale has weighed on the stock in the short term, but Bharti Airtel’s business trajectory remains firmly positive, supported by network leadership, sustained tariff rationality in the sector, and strengthening free cash flows. For long-term investors, the stock remains structurally well-positioned within India’s expanding digital and telecom ecosystem.

Also Read: Bharti Airtel Q2 Results: Profit More Than Doubles as Premium Users Drive ARPU Leadership