Bharti Airtel rights issue record date sees heavy profit booking in company’s shares, stocks tank 4.5%- Top laggard

Dragging the markets most on Tuesday, the shares of Bharti Airtel declined by 4.5 per cent to hit a day’s low level at Rs 690 per share on the BSE intraday trade today. This comes on the Bharti Airtel rights issue record date.

The second-largest telecom company was trading mute during the early hours, however, has witnessed heavy profit booking intraday. The company last week announced a fundraising plan of Rs 21000 crore through Rights issue which opens on October 5 and ends October 21, 2021.

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The counter is down almost 7 per cent from its 52-week high of Rs 739.1 per share touched last week on September 24, 2021, on the back of the rights issue announcement. 

The scrip is trading near the day’s low level at Rs 694.8 per share, down 4 per cent at around 01:00 pm, as compared to a 1.2 per cent decline in the S&P BSE Sensex at the same time.

Investors, seeking capital appreciation, to subscribe Bharti Airtel’s Right issue, suggested Market expert and Senior Research Analyst at CapitalVia Global Research Likhita Chepa adding further that this will provide the telecom company an advantage to expand its business.

Airtel has set the rights issue price at Rs 535 per share, a 26% discount to its previous close of Rs 726 per share. By October 4, the rights entitlement (RE) will be credited to shareholders’ accounts, says Chepa, adding further that the trading of REs will take place from October 5 to 18, 2021.

According to her, “Airtel is looking to raise funds to accelerate investment, primarily in the mobile business, as it seeks to increase its market share. The company also intends to use these funds to accelerate the deployment of 5G, fiber backhaul, and data center investments.”