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Bharti Airtel, the country’s biggest operator by revenue and subscribers, has initiated talks to sell more than 5 per cent of its telecom tower subsidiary Bharti Infratel through open market sales.
The move would result in the New Delhi-based telecom firm getting more than ₹3,700 crore.
Airtel, which owns a 71.7 per cent stake in the tower unit, intends to use the proceeds to pare debt and for further rollout of 3G and 4G infrastructure, sources close to the development said. They, however, did not provide any time frame for the share sale.
Rising debt As of December 2015, the operator’s net debt stood at ₹78,816 crore. The New Delhi-based telecom company, controlled by billionaire Sunil Mittal, is also expected to use part of the proceeds for the upcoming spectrum auctions.
The move to sell a stake gains significance as it comes ahead of rival Reliance Jio’s launch of 4G services.
An Airtel spokesperson declined to comment.
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