Bharti Airtel share price is in focus as the company’s Rs 21,000 crore rights issue to open on October 5.
The Rs 21,000 crore rights issue of telecom major Bharti Airtel would open on October 5, the company said in a regulatory filing on September 22. The closing date of the issue was stated as October 21, 2021.
The company also noted that the ‘Record Date’, for the purpose of determining the shareholders who shall be eligible to receive the rights entitlement in the issue, is September 28.
The issue size has been fixed as “up to 392,287,662 Rights Equity shares”, Bharti Airtel said, and reiterated the rights issue price of Rs 535 per fully paid-up equity share, including face value of Rs 5 and premium of Rs 530 per equity share.
The stock was trading at Rs 728.90, up Rs 2.15, or 0.30 percent. It has touched an intraday high of Rs 735.00 and an intraday low of Rs 727.
The scrip was trading with volumes of 2,399,160 shares, compared to its five day average of 1,311,450 shares, an increase of 82.94 percent.
The mega fundraising is bound to give more firepower to Airtel, as the company takes on rivals in the fiercely-competitive Indian telecom market.
Jay Thakkar, Vice President and Head of Equity Research at Marwadi Shares and Finance has a buy recommendation on the stock with target of Rs 770-795 per share.
“The stock, after having provided a breakout from a sideways consolidation, has been trending higher, forming higher tops and higher bottoms, with an increase in volumes and fresh buy crossover in its momentum indicators,” he said.
“The scrip has also seen a long build-up on the derivatives front, which further confirms that the trend is strong in the short term. Hence, we recommend it for a target of Rs 770-795, with a stop-loss of Rs 696,” he added.
The Union Cabinet’s relief package is likely to include a moratorium on payments for airwaves, will help India’s three major wireless carriers including Bharti Airtel.
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