Mumbai, Oct. 31: Singapore Telecommunications has decided to increase its effective stake in Bharti Airtel from 30.43 per cent to 31.95 per cent.

The move comes at a time when the Bharti Airtel stock plummeted 6.38 per cent on Friday as the telecom operator showed a slower pace of growth in the quarter ended September 30, 2009, compared with the corresponding period of the last year.

SingTel expects to invest between Rs 1,807.3 crore and Rs 3,008.4 crore to increase its stake, according to a filing to the Singapore Exchange on Friday.

The effective stake increase in Bharti Airtel will be done by SingTel raising its shareholding in Bharti Telecom to 36.16 per cent from 32.81 per cent.

Bharti Telecom is the promoter company of Bharti Airtel and holds around 45.3 per cent in the latter. The Sunil Mittal-led Bharti group declined to comment on the development.

According to the filing with the stock exchange, the acquisition — done through SingTel’s wholly owned subsidiary Pastel Ltd — is in line with the company’s strategic focus on maximising the value of its existing businesses.

Patel Ltd will buy 7,30,000 issued shares in Bharti Telecom and the payment for the transaction will be done in three tranches over nearly two years. The Bharti scrip closed at Rs 292.15 on Friday compared with Rs 415.50 on July 24.