Why Are Airtel Shares On The Up Today?

Bharti Airtel shares opened high on Monday after Carlyle, an American private equity giant, stated that it was negotiating with Blackstone, a New York-based firm, to sell its 25% share in Nxtra Data, Bharti Airtel’s data center arm, for around ₹2,500 crore.

What to know? According to a Business Standard report, this deal values Bharti Airtel’s data center business at ₹10,000 crore. In 2020, Carlyle bought this stake for about ₹1,800 crore ($235 million). Talks are ongoing, with potential additional buyers expected.

This potential sale marks Carlyle’s fourth exit in the financial year, following recent stake sales in YES Bank, Delhivery, and Piramal Pharma, totalling over ₹2,000 crore.

Why it matters? Carlyle, Blackstone, and Bharti Airtel have not commented on these developments. Since Carlyle’s investment in 2020, Nxtra Data has grown, planning to invest ₹5,000 crore to build new data centers across major Indian cities. The company currently operates a network of 12 large and 120 edge data centers, serving over 400 clients.

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Meanwhile, Blackstone has its sights set on expanding in the data center sector. Partnering with Digital Realty, they announced a joint venture to develop data center campuses in Frankfurt, Paris, and Northern Virginia, with an investment of about $7 billion.

In India, Blackstone is actively acquiring assets, including bidding for Healthium Medtech, a medical product manufacturer, and exploring a significant investment in Cipla. Additionally, Blackstone’s Aadhar Housing Finance is planning an IPO to raise ₹5,000 crore.

Price Action: Bharti Airtel shares were trading 1.54% higher at ₹1,137.30 on Monday morning shortly after markets opened for trading.

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