Moreover, the stock consolidated after taking a heavy beating on Tuesday, when it ended as the worst performer in the Sensex stock.
Tuesday was the record date for determining the shareholders who shall be eligible to receive shares in the company’s right issue, which opens on October 5 at an issue price of Rs 535 per share, almost a 25% discount to its current market price. The company seeks to raise Rs 20,987.39 crore from the rights issue that comprises up to 392,287,662 equity shares.
At 10:25 hours (IST) on Wednesday, the stock traded at Rs 693.80, down 0.3%, on the National Stock Exchange.
On Tuesday, CRISIL Rating upgraded the long-term rating of Bharti Airtel’s bank facilities and debt programme to AA+ with a stable outlook from a previous rating of AA.
The stock’s performance on Wednesday was unsurprising as certain technical indicators, such as moving average convergence divergence suggested a ‘sell signal’ for it after the recent sharp rally.
On Tuesday, Bharti Airtel was the worst performer in the Sensex pack, registering a 3.7% drop. Since the start of 2021, the stock has shot up about 40% as the company reported growth in revenue from operations and a healthy average revenue per user.
Analysts said CRISIL’s rating decision is a positive reflection on the telecom major’s longer-term prospects, as it reposes a high degree of faith in its ability to pay back debt.
“The rating action reflects continued improvement in BAL’s operating metrics, resulting in a healthy financial risk profile,” CRISIL had said.
