Bharti Airtel rises for fourth straight day; gains 10% in 4 sessions

Shares of Bharti Airtel were trading higher for the fourth straight day, up 5 per cent at Rs 356 on the BSE in an otherwise subdued market on Tuesday. The stock of telecom services provider has outpaced the market by gaining 10 per cent in four trading days, as compared to a 2 per cent rise in the benchmark S&P BSE Sensex.
On February 28, Bharti Airtel’s board had approved a Rs 32,000 crore fundraising plan, which includes a rights issue of Rs 25,000 crore and perpetual bonds with equity credit of Rs 7,000 crore (foreign denominated).

The rights issue will be raised in the ratio of 19:67 (i.e., 19 shares for every 67 shares held) at a price of Rs 220 per share. This implies 1,134 million rights shares, resulting in post equity dilution of 22 per cent.