Taking a big step in the telecom market, Bharti Airtel has significantly increased its stake in Airtel Africa. The company has completed this deal through a share-swap agreement, the total value of which is estimated at approximately Rs 28,200 crore. After this major change, Bharti Airtel’s stake in Airtel Africa has increased by 16.31 percent to about 79 percent. In the information given to the stock market on Tuesday, the company said that before this transaction it had 62.73 percent stake in Airtel Africa.
How to make such a big deal without spending money?
Generally, when a company buys such a large stake in another company, it has to pay a huge amount of cash. But Bharti Airtel has made a smart business move here. In this entire deal, not a single rupee of cash has come out of the company’s pocket. Actually, this is a completely ‘cashless share-swap’ transaction.
Bharti Airtel has issued new equity shares on preferential basis to its promoter group company ‘Indian Continent Investment Limited’ (ICIL) in exchange for acquiring 16.31 percent stake in Airtel Africa. That means the company has strengthened its economic stake in a high-growth asset without taking new debt or reducing its cash balance.
Preparation to increase promoter holding
Behind this strategic step is the far-reaching thinking of Group Chairman Sunil Bharti Mittal. During the March 2026 quarter results, he had made it clear that the group will increase its stake in its promoter companies in the coming times. Mittal believes that in the next few years, Airtel Africa will become a huge company with a revenue of $ 10 billion. This business will emerge as a very strong subsidiary of Bharti Airtel India, from which Indian investors are also expected to get excellent returns in the long run.
How was the company’s performance in Africa?
If we look at the business record of Airtel Africa, then it is understandable why Bharti Airtel has placed such a big bet on it. Airtel Africa’s net profit has more than doubled to $ 813 million (about Rs 7,700 crore) in the financial year 2026 (FY26).
The company has got this bumper benefit from the improvement in tariff rates and foreign exchange gain in Nigeria. The company has also gained great momentum on the revenue front. While its revenue was $4.9 billion in fiscal year 2025, it jumped by 29.5 percent to $6.4 billion in fiscal year 2026.
How was the movement in the stock market?
Despite such a big news, there was no big jump in the shares of Bharti Airtel in the stock market on Tuesday. Around 12 noon, the company’s shares were trading at Rs 1,915.30 with a slight decline of about 0.7 per cent.
However, it is a matter of relief for short-term investors that Airtel shares have shown a good recovery in the last one week and have gained more than 4 percent. But if you see the long chart of one year, this stock is still in the red. Market experts believe that the real benefits of this deal will be visible to the company’s business and investors in the long run.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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