ICICI Direct has given Buy recommendation for Bharti Airtel with a target price of Rs. 720 in its research report issued on Aug 31, 2021

ICICI Direct’s research report on Bharti Airtel

Bharti Airtel (Airtel) announced that its board has approved raising up to Rs 21,000 crore via rights issue at Rs 535 per share, with rights entitlement ratio at one equity share for every 14 equity shares held, implying equity dilution of ~7%. Terms of payment: Issue price will be 25% on application and balance in two more additional calls within 36 months • The promoter & promoter group will collectively subscribe to the full extent of their aggregate rights entitlement along with any unsubscribed portion.

Outlook

We maintain BUY rating with unchanged DCF based target price of Rs 720. We also advise subscribing to the rights issue.

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