Bharti Airtel dips on equity dilution concerns

The company is looking at a follow-on offer of shares and external commercial borrowing for the first time since 2002

Bharti Airtel has dipped over 3% at Rs 299 on reports that the company is planning to raise funds by issuing new shares to the public or institutional investors to pare its massive debt.

“Bharti Airtel, India’s largest mobile services company by users and sales is looking at a follow-on offer of shares and external commercial borrowing for the first time since 2002, “the media report suggests.

HSBC and Standard Chartered have received the mandate for the possible share sale, added report.

The stock opened at Rs 311 and hit a low of Rs 298.60 on the National Stock Exchange. A combined 2.57 million shares have changed hands on the counter so far on both the exchanges.