Singaporean telco Singtel has sold 1.2 percent of its stake in Indian mobile carrier Bharti Airtel for S$2 billion (US$1.55bn).

The company said the sale is part of its active capital management approach to optimize its asset portfolio and drive shareholder returns sustainably.

According to Singtel, the stake sale was carried out via a private placement to international and Indian institutional investors, with Singtel noting that the private placement attracted "strong interest from existing shareholders and new investors."

A large majority of the transaction was with domestic mutual funds and international long-only funds, added the company.

"This transaction allows us to crystallize value at an attractive valuation while remaining a significant shareholder of Airtel," said Arthur Lang, Singtel’s group chief financial officer.

"We are pleased to welcome new like-minded investors who share our conviction in Airtel’s strong growth potential as India pursues its vision of achieving a US$1 trillion digital economy. This will further strengthen Airtel’s shareholder base so that we can collectively support its long-term growth.”

Lang added that the divestment is part of the company's Singtel28 growth plan, which aims to deliver sustained value realization for Singtel's shareholders.

Singtel has been a long-term investor in Airtel for more than 20 years. Following the divestment of 1.2 percent in the company, Singtel will still hold a 28.3 percent stake in Airtel, valued at an estimated S$48 billion (US$37bn).

The company has trimmed its stake in Airtel a couple of times in the last few years.

In 2022 and 2024, Singtel raised approximately S$3.5 billion (US$2.7bn) from the progressive sale of Airtel shares – a 3.3 percent stake to Bharti Telecom and a 0.8 percent stake to GQG Partners.

Those sales helped to fund Singtel's 5G deployment, digital infrastructure expansion, and sustainable shareholder distributions.