MUMBAI: Telecom sector news has recently been revolving around how the promoter holding is moving in the respective companies- Jio, Airtel and Vodafone Idea.
While Reliance Jio is reportedly considering an IPO that would allow some PE investors to exit, Bharti Telecom is moving ahead with its share acquisition plan to consolidate its holding in Bharti Airtel.
The Aditya Birla Group has also been keen on making investments into Vodafone Idea, where the group is the main promoter.
Airtel
Promoter holding in Bharti Airtel rose earlier this year by 1.35 per cent to over 39 per cent with a Rs8,302 crore purchase of shares through a block deal.
Again a few days ago, Bharti Telecom raised it further to 40.33 per cent with an acquisition of a 1.2 per cent stake from Indian Continent Investment Ltd reportedly paying around Rs11,680 crore.
It’s not yet known how far Reliance group will dilute its stake in Jio at the IPO that is said to hit the market sometime in 2025. Moreover, it remains uncertain whether Reliance Group will dilute its stake in the IPO through an Offer for Sale (OFS), as the specifics of the offering are yet to be disclosed
Bharti Telecom is certainly strengthening its control in Airtel, the real rival to Jio, underscoring a broader trend of promoter consolidation in the company.
Vodafone Idea
In April 2024, Aditya Birla Group infused Rs2,075 crore into Vodafone Idea, the third largest operator, issuing preferential shares to its affiliate Oriana Investments, and simultaneously the company’s authorised capital was increased to Rs1 lakh crore, adding further headroom for potential future fundraising needs
In September 2024, Aditya Birla Group chairman Kumar Mangalam Birla had personally acquired an additional 1.86 crore shares of Vodafone Idea, further reinforcing his stake and commitment.
Over the years, Bharti Telecom’s stake-building moves have helped it maintain control and support Airtel’s ambitious growth strategy, including its aggressive 5G rollout and expansion into digital services.
By consolidating its stake, Bharti Telecom seems poised to support Airtel’s transformation as it pivots toward new revenue streams like enterprise IoT, digital payments, and data centers.
“This series of acquisitions highlights Bharti Telecom’s commitment to the long-term vision for Airtel, as it seeks to navigate a dynamic market landscape and intense competition,” said a telecom expert while talking to businessbenchmark.news
With the recent increase in stake, the promoter group not only reinforces its control but also signals confidence in Airtel’s future, especially as the telecom giant adapts to the fast-evolving needs of digital India.
Jio shareholding
Mukesh Ambani’s Reliance Industries holds a 67.03 per cent stake in Jio Platforms Ltd (JPL), which includes Jio’s telecom operations.
Strategic investors, such as Meta and Google, collectively hold 17.72 per cent, while private equity investors, including firms like KKR and Vista Equity Partners, own 15.25 per cent.
Only the IPO can tell us who all will stay and who all will diltue their stake in Jio.
