Driving the markets the most on Tuesday, shares of Bharti Airtel fell 4.5% to hit a one-day low of 690 rupees per share on BSE intraday trading today. This comes on the date of registration of Bharti Airtel’s rights issue.
The second largest telecommunications company was silent for the first few hours, however, made big profits by booking during the day. The company last week announced a fundraising plan of Rs 21,000 crore via a rights issue which opens on October 5 and ends on October 21, 2021.
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The counter is down nearly 7% from its 52-week high of Rs 739.1 per share reached last week on September 24, 2021, following the announcement of the rights issue.
The certificate is trading near the low of the day at Rs 694.8 per share, down 4% around 1:00 p.m., against a 1.2% decline in the S&P BSE Sensex at the same time.
Investors, looking for capital appreciation, should subscribe to Bharti Airtel’s Right issue, suggested Likhita Chepa, market expert and senior research analyst at CapitalVia Global Research, further adding that this will provide the telecommunications company an advantage to develop its activities.
Airtel has set the rights issue price at Rs 535 per share, a 26% discount from its previous close of Rs 726 per share. By October 4, the Rights Entitlement (RE) will be credited to shareholders’ accounts, Chepa said, further adding that RE trading will take place from October 5 to 18, 2021.
According to her, “Airtel is looking to raise funds to accelerate investments, mainly in the mobile sector, as it seeks to increase its market share. The company also intends to use the funds to accelerate the rollout of 5G, fiber backhaul and data center investments.