36: Why Bharti Telecom’s decision to retire debt is good news for Airtel investors

Bharti Telecom, a promoter of Bharti Airtel, has sold 152 million shares for about Rs8,500 crore in a block deal on Tuesday. This will help Bharti Telecom repay its entire debt worth Rs8,500 crore. The shares were sold at a time when Airtel shares were at an all-time high. Airtel shares fell over 5% on Tuesday, as the deal was done at a discount of about 5% to its previous closing price. Even so, the share sale should not unnerve investors. Here's why.