Shares of Bharti Airtel climbed 3 per cent trade after the company launched a $2 billion qualified institutional placement (QIP) at an indicative issue floor price of Rs 452 per share. The telecom operator also launched a $1-billion foreign currency convertible bonds (FCCBs) issue. Brokerages largely stayed positive on the stock post the fund-raising announcement. Morgan Stanley has maintained an overweight stance on Bharti Airtel with a target price of Rs 530 per share.
Following the development, the stock rose 3.3 per cent to hit a high of Rs 474.05 on BSE. The floor price for the QIP at Rs 435 a share was at a discount to the stock’s Wednesday closing price of Rs 458.95. The FCCB issue’s floor price is set at Rs 452.09. The QIP of up to Rs 14,400 crore will lead to equity dilution of 6.45 per cent at full subscription, brokerage firm Kotak said in a note. The telco, which has to clear Rs 35,586 crore dues to the DoT by January 23, will use a part of the proceeds to meet this liability.
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