Bharti Airtel shares cost edge higher as Rs 21,000-crore rights issue opens

Bharti Airtel shares cost edge higher as Rs 21,000-crore rights issue opens

Bharti Airtel share cost is in focus as the organization’s Rs 21,000-crore rights issue opens today. The closing date of the issue is October 21, 2021. The issue size has been fixed as “up to 392,287,662 Rights Equity shares”, the organization said.

The rights issue price comes to Rs 535 for each completely paid-up equity share, including face worth of Rs 5 and premium of Rs 530 per equity share, Bharti Airtel said.

The rights qualification ratio involves one equity share for each 14 equity shares held by qualified shareholders as on the record date.

The mega raising money will undoubtedly give more capability to Airtel, as the organization takes on rivals in the savagely competitive Indian telecom market.

As indicated by IIFL Securities, the somewhat paid rights issue is a decent approach long by easing up capital allocation. The organization’s party paid share is a somewhere down in the cash Call Option. Telecom sector has emerged from a decade long consolidation, it said, as indicated by a CNBC-TV18 report.

“The stock has given a multi-year break-out purely based on technicals. Passive funds will have to renounce their Bharti Rights entitlement,” the brokerage firm said.

At 10:32 hours, Bharti Airtel was trading at Rs 688.90, up Rs 7.80, or 1.15 percent. It has contacted an intraday high of Rs 694.25 and an intraday low of Rs 680.65.

It was trading with volumes of 4,210,202 shares, contrasted with its 5 day average of 750,204 shares, an increment of 461.21 percent.

The share touched its 52-week high Rs 738.79 and 52-week low Rs 386.79 on 24 September, 2021 and 19 October, 2020, respectively.

Bharti Airtel right issue opens today and will close on October 21, 2021, generally speaking right issue size of Rs 21,000 crore. Prior, the organization fixed its record date of September 28, so investors would have gotten the right qualification of Bharti Airtel right issue in the ratio of 1:14 offers which is for each 14 shares of Bharti Airtel investors will get the 1 entitlement of Bharti Airtel Rights at a cost of Rs 535. With rights entitlement, investors have two alternatives, to apply for the right issue by paying the primary portion of Rs 133.75 or to sell their right qualification on trades which is exchanging at Rs 204.5. Those investors who are not intending to apply for the right issue should sell their entitlement, said Yash Gupta, Equity Research Analyst at Angel One.

“We are expecting Bharti Airtel RE to come down as we expect some selling pressure from passive mutual funds as they cant hold partially paid-up shares,” he added.

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Economy Compare journalist was involved in the writing and production of this article.