By Malvika Gurung
Investing.com -- Telecom giant Bharti Airtel (NS: BRTI ) announced its plans of considering fundraising through a preferential share issue to non-promoters, on Monday. The telco’s board of directors will meet on January 28 for consideration and evaluation of the proposal, stated the telco.
As a result, the company’s stock climbed 3.77% to Rs 716 apiece at 2:05 pm, after surging over 4% earlier on Tuesday, listing among top gainers. As the issuance of shares will apply to non-promoters of the telco, its promoter stake will dilute after the potential issue.
Airtel’s decision on Monday surprised the market, as global brokerage firm Jefferies (NYSE: JEF ) feels that the telco is in no need of capital.
It notes, “An issuance to usher in a strategic investor that boosts its enterprise/digital offerings will be seen positively, however, any large acquisitions will be viewed negatively.”
The brokerage has maintained its Buy call on the stock, setting a target price of Rs 925/share, an upside of 29.2% compared to its current price.
In other news, Airtel has informed on Tuesday, of commissioning a new 21 MW solar power plant in Maharashtra, in line with its carbon footprint reduction and its contribution to the global efforts of curbing the effects of climate change, states a PTI report.
The country’s second-largest telco aims to reduce 25,517 tonnes in carbon emissions annually through the solar-powered unit.
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