On March 7, Singapore’s telecommunications giant Singtel announced the sale of a 0.8 percent equity stake in Bharti Airtel to GQG Partners, an investment firm led by Rajiv Jain, for a staggering Rs 5,849 crore. Following this block deal, Bharti Airtel’s shares initially dipped at the start of trading but quickly regained lost ground, trading flat thereafter.
In the block deal, approximately 4.9 crore shares, equivalent to nearly 1 percent of the company’s stake, were exchanged. As of 10:08 am, shares of Bharti Airtel were trading at Rs 1,199.90 on the NSE.
In a recent interview with Moneycontrol dated February 27, Bharti Enterprises Chairman Sunil Bharti Mittal emphasized the significance of Bharti Airtel’s Average Revenue Per User (ARPU), highlighting its status as the industry leader while stressing the need for it to reach the Rs 300 mark.
Mittal stated, “The first pitstop was Rs 200, which took five to six years to achieve. However, this journey has been prolonged, accompanied by rising costs and inflation. Therefore, reaching Rs 300 may or may not be relevant in today’s context, but it remains a milestone we aspire to attain. Currently, we maintain a slight premium over our competitors.”
The stock also saw an uptick following a positive outlook from brokerage firm Jefferies, which reaffirmed its buy recommendation based on optimistic forecasts for Average Revenue Per User (ARPU).
In the third quarter of the fiscal year 2023-24, Bharti Airtel reported a net profit of Rs 2,442.2 crore, marking a significant 54 percent increase compared to the same quarter in the previous year. Additionally, the company’s revenue witnessed a healthy growth of 6 percent year-on-year, reaching Rs 37,900 crore.
Apart from Bharti Airtel, GQG Partners’ prominent investments in India include ITC, where it holds a stake valued at $1,060 million as of December 2023.
Other notable investments by GQG Partners in India encompass ICICI Bank ($403 million), Adani Enterprises ($437 million), State Bank of India ($345 million), Adani Ports ($329.2 million), and Adani Green Energy ($396.1 million).
Furthermore, GQG’s emerging market fund also includes investments in Sun Pharma, HDFC Bank, Adani Power, and NTPC, reflecting the firm’s diverse portfolio within the Indian market.
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