Bharti Telecom Unlisted Shares

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Bharti Telecom is holding company of Airtel
Bharti Telecom announced buyback for shareholders

Bharti Telecom is the holding company of India’s largest telecom company Bharti Airtel. For buying shares of Bharti Telecom or any other companies, please call on 8108303330  

Sunil Bharti Mittal family and Singapore telecom firm Singtel-owned firm Bharti Telecom held 50.1% stake in Bharti Airtel at the end of March 2019.  The Singapore-based company in February 2018 subscribed to new shares issued by the company at Rs 310 apiece, according to company filings. It had raised funds primarily to pay its debt.

Bharti Airtel shares a nearly two-decade-long relationship with Singtel, which has only become stronger over the years. The fresh round of investment highlights the confidence of Singtel in Airtel, and the increased attractiveness of the Indian telecoms sector following the recent consolidation, as per Deven Khanna, Managing Director of the company.

It may be recalled that when, in October 1999, Bharti Telecom delisted its shares from the Bombay Stock Exchange (BSE), it made an open offer at a price of Rs 95 a share, a price that was increased by a rupee subsequently. Many shareholders did not participate in the 1999 buyback offer while others joined the ranks of the company’s shareholders through private purchases.

In 2018, promoters of the company announced providing an exit to minority shareholders to offer minority shareholders a chance to exit from the company as it is no longer listed on the stock exchanges. The company is offering an exit route to its 4,942 public shareholders who own 1.1% stake in the company.

The current offer price is based on valuing the shares of Bharti Airtel at Rs 368 – which is its two-week VWAP as of 31 May 2018, after factoring in an illiquidity discount of 25% as determined by Ernst & Young and a DDT rate of 20.55%. The exit price of Rs 163.25 per share (which together with the dividend distribution tax of Rs 33.55 per share payable by the company on account of capital reduction amounts to Rs 196.80 per share).

Bharti Telecom generates most of its revenue from the dividend it receives from Bharti Airtel. The company manufactures push button telephones, cordless telephones, and fax machines. The company was founded in 1984 and is based in New Delhi, India.

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