Bharti Airtel share price jumps up 5% after BOARD approves Rs 21000 cr fundraising plan – know details here

The telecom heavyweight Bharti Airtel’s shares jumped over 5 per cent to Rs 624 per share on the BSE intraday trade on Monday, as the company’s board on Monday approved the fundraising plan of Rs 21,000 crore through the rights issue. 

The company in its filing said, “The Board of Directors (‘Board’) of the Company, at its meeting held today, comprehensively reviewed the industry scenario, business environment, financial/ business strategy of the Company and approved the Company’s plan to raise further capital.”

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“Accordingly, the Board approved the issuance of equity shares of the face value of Rs. 5/- each of the Company on rights basis to eligible equity shareholders of the Company as on the record date (to be notified later), of an Issue size of up to Rs. 21,000 crores,” the company further said in a filing. 

The rights issue is priced at Rs 535 per fully paid-up equity share, including a premium of Rs 530. Further, the rights entitlement ratio entails one equity shares for every 14 equity shares held by eligible shareholders as on the record date, the company had said in a statement on Sunday. 

The terms of payment of issue price will be 25 per cent on application and balance in two more additional calls as may be decided by the board or the committee of the board from time to time based on the company`s requirements within an overall time horizon of 36 months.

Even the brokerages such as UBS, CLSA and Jefferies initiate a Buy coverage with a target price of Rs Rs 665, Rs 780, and Rs 685 per share. Brokerages are of a view that this fundraising will strengthen balance sheet and also preparation for 5G spectrum action.

The shares of Bharti Airtel ended at day’s high level over 5 per cent to Rs 625 per share on the BSE, as compared to 1.36 per cent rise in the S&P BSE Sensex.