The Bharti Infratel stock fell up to 5 percent after its parent firm Bharti Airtel sold its stake for Rs 3,325 crore via a stock market transaction.
At 1:06 pm, the stock was trading nearly 3 percent or 12 points lower at 399 level on the BSE.
The Bharti Infratel stock closed 4.16 percent or 17.10 points lower at 394 level on the BSE. The Airtel stock ended at Rs 497, down 0.07 percent.
Bharti Airtel said the firm via its wholly owned subsidiary, Nettle Infrastructure Investments Limited, announced the successful divestment of 83 million shares of its subsidiary Bharti Infratel through a secondary share sale in the stock market.
The sale was for a total consideration of over Rs 3,325 crore ($510 million) and was executed at a price of Rs 400.6 per share, representing a discount of 3.6% to the previous day's closing price.
The allocation was done to global investors, fund managers and long only funds, including many repeat investors. Led by healthy investor appetite, the deal was upsized by over 25%. Bharti Airtel will primarily use the proceeds from this sale to reduce its debt.
After the transaction, Bharti Airtel and its wholly owned subsidiaries have an equity holding of 53.51% in Bharti Infratel.
JP Morgan, UBS and Goldman Sachs were joint placement agents for the transaction.