How to screw shareholders- Bharti Edition

This sorry saga relates to Bharti Telecom, the unlisted holding company of the Bharti Group.

In Jan, 2018, the following valuation report was submitted which valued the shares of Bharti Telecom @ Rs.310 per share.

In Feb, 2018, Singtel invests in Bharti Telecom @ 310 Rs/share investing a whopping Rs.2,649 Crores.

Fast forward to June 2018,the good folks at Bharti Telecom now want to extinguish the shares held by minority shareholders  @ 163.25 Rs/share !!


26 replies on “How to screw shareholders- Bharti Edition”

SEBI must take the matter strongly with Bharti and see that minority shareholders are not cheated by this way.

This is grossly unfair.Not expected from such successful promoters.. Sebu should take care or the interests if small minority shareholders.

Mr Mittal,

Treat us as your partners in your Growth story from last 25 years and not as minority shareholders. Is this the reward for 25 year long association.

Promoters of the Bharti Telcom is acting in a autocratic way to extinguish minority share holders. Since long we are shareholders of the company and declined the exit route which the company offered earlier. Now we have all have to approach the regulatory body that autocracy of the company cannot be enforced on us. I already voted against the resolution. I request all the minority share holders they should participate in voting by applying their judicious mind. Ajay Kiran Singhal. email id

Shareholders did not get a dividend for so many years. Now that they have made Bharti Airtel a subsidiary, dividends will be paid in the future without having to pay DDT. Further value may be unlocked by listing and or M&A action. Bigger surprise is how Singtel, a dominant shareholder in the company allows such minority unfriendly behaviour. These are the reasons why some promoters do not enjoy the same multiples that better managements do! Minority investors remember these things and are apprehensive of investor unfriendly behaviour. How much will they save in the larger scheme of things by paying less on 1 odd percentage of shares? I think that the management is getting bad advice and there is still time to correct this.

Many Billionaires from India are joining the “Giving Movement” as being promoted by Bill Gates and Warren Buffett. Many Indian Companies, voluntarily or by regulation, implementing Corporate Social Responsibility (CSR) programmes. Mr Sunil Mittal & Bros have created Bharti Foundation for their charitable activities. But what about another form of CSR- Corporate Shareholder Responsibility? Rich promoters should realize that their are lot of mid or low income savers who are their shareholders and are dependent on future dividends and capital appreciation for their retirement. Treat the minority as partners and reap the benefits of higher valuation multiples! Win-Win!

We should immediately do what we CAN do. If u want to stop this: eVote NO on the resolution.
Last date is 26 July. Dont delay.

Why extinguish shares by Dividends instead of the common method of BuyBack.
Why should the minority shareholder be forced to pay DDT of 20.555 % as deduction in hands of company.
And then further Tax if this money obtained as dividend exceeds 10lakhs.

If we simply sold shares back to company the Tax would be 10% as per LTCG.
BT cant stop coming up with tricky ideas to shortchange the minority.

Hi friends, I have written to SEBI, MCA and NCLT about the gross discrimination being done to minority shareholders (MSH). I have highlighted about the zero dividends, forcibly trying to remove MSH, trying to adopt dividend method instead of buyback, offering only half the value when compared with the allotment at double the value to a foreign share holder.
I request every MSH to similarly raise the issue with the above authorities for justice.
In this modern era when great personalities and big companies are giving away their wealth for the benefit of poor and development of the world, Mr Sunil Mittal is trying to make money out of just 1 percent MSH, who stuck to the company faithfully throughout the last nearly 25 years like one family without even a single paisa of dividend. Now he is trying to throw the MSH out as if they are dust. Mr. Sunil Mittal may have enough for another 20 of his generations, but this is the only one lifetime chance for the MSH to improve their lives. I hope that Mr Sunil Mittal has not forgotten his earlier life when he has struggled to come up in life by God’s grace and should give the MSH a fair, happy, satisfied and respectable exit.

Hi friends, I have received a reply from SEBI that they do not take up complaints against delisted companies and have advised to contact MCA – Ministry of corporate affairs for the same.
I request all MSH to write to MCA about Bharti telecom’s s unethical and disgusting conduct.

Hi all MSH,
Even though we are making some profit from Bharti offer, it is very unfair to exploit the legitimate right of a shareholder to receive fair treatment from their Company.
Bharti is using all the legal loop holes employing experts in Legal and Financial fields to short change unorganized Minority
It appears to me like “take it or leave it attitude” because we are not a force to reckon.Uncle Ben style.

Trust Ministry of Corporate affairs or any other appropriate legal body will look into the interest of every one in a fair and square way.

Yesterday, I wrote to MCA about the unfair practice the promoters of the Bharti Telecom Ltd and also suggested that they should make this to those identified small investors who request them to have an exit opportunity. I had also read in a newspaper that ICICI fame whistle Blower has made a petition at SEBI for these unethical practices adopted by the promoters of the company

What goes around, comes around. Bring this to the attention of Mr Mittal. If one grab someone’s legitimate right, that person will end up paying many times over elsewhere. Hope some good sense prevails and they decide to pay the Minority shareholders their legitimate right without penalizing them in any way.

I perfectly agree with K K Modi’s views.
In fact, Alpha Ideas should create a forum where such cases can be referred, a separate group is formed for the aggrieved and cheated investors who can share their views and woes and then can jointly take up the matter not only with the regulators and administrators but also with the Companies strongly.

I am a share holder in Bharti Telecom.
Is there any association for investors like us

I am holding shares since IPO and Rights Issue. Please share latest updates that would help minority share holders….

Now that the promoters have taken up our shares, i want to know how the realised amount will be taxed and what would be taken as fair market value as on 31-Jan-2018?
Please help

Please guide us about the tax liability after the acquisition of the shares by the promoters

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