Bharti Airtel shares gain over 4 per cent as Rs 21,000-crore fundraising plan gets board approval 

Shares of Bharti Airtel gained over 4 per cent after the company's board approved raising up to Rs 21,000 crore by way of rights issue.
Bharti Airtel (File Photo| Reuters)
Bharti Airtel (File Photo| Reuters)

NEW DELHI: Shares of Bharti Airtel on Monday gained over 4 per cent after the company's board approved raising up to Rs 21,000 crore by way of rights issue.

The stock jumped 4.44 per cent to close at Rs 620.35 on the BSE.

During the day, it rose by 5.21 per cent to Rs 624.90.

On the NSE, it gained 4.25 per cent to close at Rs 620.45.

The company's market valuation zoomed Rs 14,499.91 crore to Rs 3,40,697.91 crore on the BSE.

In traded volume terms, 10.75 lakh shares were traded at the BSE and over 3.97 crore units at the NSE during the day.

Telecom operator Bharti Airtel's board on Sunday approved raising up to Rs 21,000 crore by way of the rights issue, at a price of Rs 535 per share, according to a regulatory filing.

The mega fundraising is bound to give more firepower to Airtel, as the company takes on rivals in the fiercely competitive Indian telecom market.

Airtel's board, which met to consider the company's capital raising plans, cleared the rights issue price of Rs 535 per fully paid-up equity share, including a premium of Rs 530 per equity share.

In a BSE filing, Airtel said that the "...board approved the issuance of equity shares of the face value of Rs 5 each of the company on a rights basis to eligible equity shareholders of the company as on the record date (to be notified later), of an issue size of up to Rs 21,000 crore".

A rights issue is an offer to existing shareholders to buy additional new shares in the company.

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