Explained - The key factor behind the drop in Bharti Airtel share price on Monday

Shares of Bharti Airtel Ltd. declined as much as 3% in early trade on Monday, May 11, as its board, at its upcoming meeting this week, is considering the reorganization of its subsidiaries' shareholdings, including Airtel Africa.

The company might pay for the same using cash, issuing new shares (preferential allotment), or a mix of both.

The board meeting is scheduled for Wednesday, May 13, 2026, which is also the day when it will be announcing its quarterly results.

What Do The Analysts Say?

Analysts speculate this could involve the potential purchase of Bharti Airtel buying 16% stake in Airtel Africa, which is currently held by Bharti Enterprises, the promoter group led by Sunil Mittal.

This will increase Bharti Airtel's ownership of its African unit from 62% to 78%. Bharti Airtel will have to pay between $2.8 billion to $3 billion at the current market prices for a 16% stake in the firm.

Analysts fear that the massive $3 billion purchase will eat into dividend payouts for shareholders. They currently project the dividend payout to be ₹35 per share.

Shares of Bharti Airtel are down 2% on Monday at ₹1,798.8. The stock is down 15% so far in 2026.

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