Bharti Airtel’s shares were the centre of the limelight today after its holding entity, Indian Continent Investment (ICIL), witnessed a huge block deal. Bharti Airtel’s shares opened for the morning trade at Rs 1,670, only to fall to Rs 1,652.40. Today, the stock is also lower by 1% from the latest available data, trading for Rs 1,651.05. But what went down, and who were the players? Let’s know.
The highlights: Rs 8,485 crore block deal
On February 18, ICIL led by Sunil Mittal, the promoter entity, sold Bharti Airtel's holding worth 0.84% through block deals. This is equivalent to 51.1 million shares worth Rs 8,485.11 crore.
A report by Nuvama has reported that the shares worth Rs 5,300-5,500 crore were bought by the foreign institutional investors (FIIs), while the remainder portion went towards the domestic institutional investors (DIIs). This kind of deal is supposed to indicate the market mood and the investors' level of confidence—so the players actually involved were?
Who Were the Major Purchasers?
A notable stake—12 million shares—was bought by Bharti Telecom (BTL), the prime level holding company for Bharti Airtel. But they were not the only heavy hitters for this transaction.
According to the Nuvama report, multiple institutional investors were engaged in the block deal. Following are some of the significant buyers:
• Goldman Sachs Trust II and GQG Partners purchased 9,099 shares for Rs 1,510 crore each.
• SBI Life has invested Rs 500 crore for 3,012 shares.
• National Pension System (NPS) Trust bought 2,711 shares for Rs 450 crore.
• Vanguard purchased 1,701 shares for Rs. 282 crore.
• Reliance Trust Institutional bought 1,561 shares for Rs 259 crore.
• Fidelity (All Schemes combined) bought 960 shares for Rs 159 crore.
• India Acorn Fund, Nordea, Australiansuper, and ICICI Prudential Mutual Fund were also investors, purchasing shares worth Rs 120 crore to Rs 145 crore.
• RBC Funds and Ashoka India Equity Investment topped the list by purchasing Rs 87 crore and Rs 78 crore worth, respectively.
How Has Bharti Airtel’s Stock Perfomed?
Despite today’s dip, Bharti Airtel has fared exceptionally well during the past one year. Bharti Airtel’s market capitalization is now Rs 9.91 lakh crore.
Here’s a summary of its recent history by the stock:
• Past 5 days: Has dropped by more than 3%.
• One-month performance: Increased by nearly 12%.
• Yearly return: Bharti Airtel shares rose by a massive 44% over the year.
For long-term investors, this kind of fluctuation is not surprising. Dips short-term can happen when block deals occur, but the overall trend is one of strength.
Bharti Airtel’s Q3FY25 Earnings Snapshot
On the financial front, Bharti Airtel has reported robust third-quarter numbers for the quarter ended December 31, 2024.
• Net profit (Consolidated): Rs. 14,781 crore
• Total income: Rs 45,599 crore, compared to Rs 38,339 crore for the previous quarter.
With strong fundamentals and steady progress, the recent dip can easily turn out to be only temporary from otherwise rising levels. Whether you are an investor or only following the market, Bharti Airtel is one company worth keeping close eyes on.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It does not constitute legal, financial, or professional advice.
