Insights Into Bharti Airtel’s Block Deal of ₹5,849 Crore

On March 07, 2024, 4.95 crore shares of Bharti Airtel Ltd were exchanged in a block deal of ₹5,849 crore. The share of Bharti Airtel Ltd opened at ₹1207.10 with a day low of ₹1189.20 on March 07, 2024, at 10:16 AM. In the past six months, the stock has delivered a return of ~36.09% and 57.07% in the past six months and one year, respectively.

On December 07, 2023, another block deal of 1.8 crore equity shares, amounting to a 0.8% stake of the company, worth ₹1,856 crore, dented the company’s share price by ~2%.

Bharti Airtel Ltd is one of the leading global providers of telecommunication services. The company enjoys a rich presence in 18 countries, representing India, Sri Lanka, and 14 countries in Africa. The company reported a YoY growth of ~54% in net profit to ₹2,442.2 in Q3 FY2024. During the same period, revenue also rose 6% on a YoY basis to ₹ 37,900 crore.

What Is a Block Deal?

A block deal is a large, private transaction involving the sale or purchase of a significant number of shares outside of the regular trading session. Unlike regular trades on the stock exchange, block deals occur in separate block deal windows before or after the regular market hours. These deals involve large institutional investors like hedge funds or mutual funds, and the volume can be substantial, ranging from millions to hundreds of millions of shares.

Impact on Share Price

The impact of a block deal on share price depends on several factors, including:

• Nature of the deal: If it’s a buy order, it can signal investor confidence in the company, potentially leading to an increase in demand and share price. Conversely, a large sell order might indicate concerns, leading to a decrease in demand and a potential price dip.
• Size of the deal: Larger block deals have a greater potential to influence the share price due to the sheer volume of shares involved.
• Overall market conditions: The impact of a block deal can be amplified during periods of high volatility or low liquidity.

While block deals can influence share prices, the impact is often temporary and may not reflect the company’s long-term fundamentals.

Disclaimer: This blog- has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.