Bharti Airtel’s re-rating hinges on decent tariff hikes, capex control
3 years, 6 months ago

Bharti Airtel’s re-rating hinges on decent tariff hikes, capex control

Live Mint  

After a significant equity dilution over the past two years, Bharti Airtel’s unexpected announcement of another fundraising did seem a bit too soon. But chairman Sunil Mittal assured investors in a conference call that fundraising through the rights issue was to fund new growth avenues and data centres among other initiatives. Note that Bharti’s fundraise of ₹21,000 crore through a rights issue will come with a 7% equity dilution, but it will also strengthen the company’s balance sheet and reduce its debt-to-equity ratios. Airtel Africa’s free cash flows have increased more than 4 times in 2 years to $647 million, which we expect to increase to $1.1 billion by FY24,” said analysts at IIFL Securities in a client note.

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