Credit Suisse has maintain outperform rating on the stock with a target of Rs 550 per share
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.
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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.