InvestorQ : Why did the stock of Bharti Airtel rally on Tuesday 25 January?
Tisha Malhotra made post

Why did the stock of Bharti Airtel rally on Tuesday 25 January?

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Aashna Tripathi answered.
4 months ago
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Bharti Airtel was up 4% at Rs.717.50 on 25 January it had announced plans to raise funds via preferential issue. The issue will be taken up for discussion in the 28-January meeting. Bharti has already told the government that it would pay the interest on the AGR dues and not want to convert the interest dues into equity. The stock has already rallied 32% in the last 6 months against just 8% for the Sensex.

Bharti has also hiked the tariffs from November and that is expected to reflect in a 6% rise in the ARPU or the average revenue per user. There is a lot of SIM consolidation at the bottom-of-the-pyramid so subscriber numbers are likely to be flat. What investors are happy is that Bharti is raising big funds and putting it to good use.

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