Bharti Telecom is planning to increase its stake in Airtel from about 40% to over 50%, aiming for more stability once Chairman Sunil Bharti Mittal is away.
Mittal said this to CNBC-TV18 when asked about the promoter group's shareholding, explaining that the $12 billion to $14 billion move will be funded through dividends, share buybacks, and promoter support.
Stake hike starts this year
The stake hike starts this year and will roll out over five to six years, including buying shares from outside investors like Singtel (which owns around 7%).
This comes as Indian companies face corporate shake-ups, with Mittal saying stronger promoter control helps keep things steady, pointing out that he was not concerned about the risks of excessive promoter control, thanks to proven global practices.