Bharti Airtel Ltd, India's biggest cellular carrier by customers by subscribers, has hit an agreement with Qatar Foundation Endowment (QFE) to sell 5 per cent stake for $1.26 billion (nearly Rs 6,796cr).

Under the terms of the agreement, Airtel will sell 199.87 million new shares to QFE at a price of Rs 340 apiece, which represents a premium of 7.3 per cent to the stock's closing price on Thursday.

The Indian network provider said, "The investment will further strengthen the capital structure and provide further flexibility for the Company to deliver on its growth strategy."

The stake sale will help the country's biggest cellular carrier in slashing its huge debt pile. The company has a debt of more than Rs 60,000 crore on its books.

Airtel Chairman Sunil Bharti Mittal said that the strategic partnership deal demonstrated QFE's confidence in Airtel's strategy for growth. He added that the partnership would further strengthen economic as well as cultural ties between Qatar and India.

Stock in Bharti Airtel surged more than 4 per cent in early trade today, on Friday, even as the broader markets traded lower.