Airtel stock down 1.5% in early trade; board to meet Aug 29 on fund raise

Bharti Airtel shares were trading 1.5% lower in early trade, a day after India’s second largest telco said its board will meet on August 29 to consider and approve raising funds via equity, equity linked or debt instruments or a combination.

The stock was trading 1.5% lower at Rs603 on the BSE Thursday. Shares of the telco had closed 1.2% lower at Rs 612.45 on Wednesday.

Analysts say the carrier’s latest move is likely aimed at meeting its adjusted gross revenue (AGR) and spectrum dues totalling nearly Rs 13,000 crore coming up for payment in the first half of 2022. They added that the fund raising will further strengthen Airtel’s balance sheet, and combined with a financially strong Reliance Jio, will add to the woes of cash-strapped Vodafone Idea, who could cede revenue and subscriber market share even faster.