Bharti Airtel share price: Index heavyweight drags market most amid fundraising announcement; stock slumps 3.5%
Dragging the Nifty Index most, the shares of Bharti Airtel slumped 3.5 per cent at Rs 591.2 per share (day’s low) on the BSE intraday trade on Thursday, a day after the telecom firm announced a fundraising plan through various options.
Dragging the Nifty Index most, the shares of Bharti Airtel slumped 3.5 per cent at Rs 591.2 per share (day’s low) on the BSE intraday trade on Thursday, a day after the telecom firm announced a fundraising plan through various options.
The stock of India’s second-largest telecom service provider has corrected over 8 per cent from its record high level of Rs 644 hit on August 16, 2021.
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Aftermarket hours, Bharti Airtel in its filing to exchanges said that the company’s board will meet on August 29, 2021, to consider and approve raising funds via equity, equity-linked, or debt instruments or a combination of the same while points out various options for raising capital.
The telecom firm, however, is yet to reveal the quantum and purpose of the fundraising intimated, the experts believe this being done mostly be to deleverage the balance sheet.
In the last one month, the stock has gained around 9 per cent from Rs 543 per share on the BSE, despite the correction from its record high level. In comparison, the S&P BSE Sensex has gained by 5.5 per cent during the same period.
The stock had also become the top laggard in the mixed market at the open on Thursday. However, it has been trading near life high levels, lately, as the ongoing concern of Vodafone Idea increases.
The global brokerage firm Jefferies terms this fundraising news as a surprise and says it will remain a near-term overhang. It says, this fundraising to up capacity in anticipation of large market share shifts could be seen positively, however, any stake bought in Indus Towers may be seen negatively.
The brokerage firm maintains a Buy rating with market share shifts set to accelerate and sets a price target of Rs 685 per share.
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