Bharti Airtel share price rose over 3% in early trade today after the telco launched a qualified institutional placement (QIP) offer worth $2 billion at a floor price of Rs 452 per share and a separate foreign currency convertible bonds issue (FCCBs)for raising another $1 billion.
Share price of Bharti Airtel opened with a gain of 2.63% on Thursday and later touched an intraday high of Rs 474.05, rising 3.29% on BSE.
The stock currently trades 4.37% away from 52 week high of Rs 485.75 on BSE. Market depth data on BSE suggested 56% or 1.97 lakh buyers bidding against 45% or 1.58 lakh sellers offering the stock.
Overall 43 lakh and 106.9 lakh shares were changing hands on BSE and NSE. Volume-wise, today's traded amount was higher than the stock's 5, 10 and 50-day average volume traded.
Bharti Airtel shares have gained 4.5% in the last 2 sessions. The stock price has gained 1.2% in a week, 3.3% in a month and 1.02% year-to-date. Bharti Airtel stock trades higher than its 5, 20, 50, 100 and 200-day moving averages.
"The company proposes to utilize the net proceeds for any payments that may be required to be made arising out of the judgment of the Supreme Court of India delivered on 24 October in relation to a long outstanding industry-wide case in respect of the definition of adjusted gross revenue (AGR)," Airtel said on Wednesday.
The company in a regulatory statement said the QIP will be of equity shares of face value of Rs 5 each
In another development, brokerage Morgan Stanley on Thursday maintained overweight on Bharti Airtel at a target price of Rs 530 per share, citing that it sees a 'faster-than-expected price recovery' as a key risk to the upside.The primary goal of QIP is to take care of AGR liabilities, the brokerage house said.
By Rupa Burman Roy