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Last Updated : Dec 05, 2019 10:19 AM IST | Source: Moneycontrol.com

Bharti Airtel share price falls 3% on plans to raise capital; Credit Suisse maintains outperform

Credit Suisse has maintain outperform rating on the stock with a target of Rs 550 per share

 
 
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Bharti Airtel share price fell early 3 percent intraday on December 5 after the company approved raising $3 billion via debt and equity.

The board of the company on December 4 approved a plan to raise up to $3 billion via debt and equity route. Of the aforementioned amount, $2 billion will be raised via a qualified institutional placement (QIP).

The remaining amount would be raised through the issuance of foreign currency convertible bonds (FCCBs) or other similar security denominated in foreign currencies and through redeemable non-convertible debentures along with warrants or other similar rupee-denominated security.

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Credit Suisse has maintained an outperform rating on the stock with a target of Rs 550 per share

The $3 billion fundraise is to aid any potential regulatory payment and company is well-positioned to capitalise on pricing recovery, said Credit Suisse.

It feels that the company's leverage may decline to 3.2x from the current levels of 4.3x after price hike and $2 billion equity raise will help to bring it down to 2.9x by FY21 & 2.4x by FY22.

The stock is the preferred pick in the sector, it added.

Recently the company announced revised tariffs for its mobile customers.

At 0930 hrs, Bharti Airtel was quoting at Rs 453.80, down Rs 7.05, or 1.53 percent on the BSE.

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First Published on Dec 5, 2019 10:19 am
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