Bharti Airtel is the top loser on the BSE, going down 5% to Rs.302.60 and the mood on the counter remains somber.

The market is very disappointed with the pricing of the rights issue, which is at a discount.

The issue has been priced at Rs.220/share. This is at a 31% discount to yesterday’s closing price of Rs.319. This works out to a ratio of 19 shares for every 67 shares held.

The company plans to raise Rs.32,000 crore via rights issuance of up to Rs 25,000 crore and perpetual bond with equity credit up to Rs.7000 crore.

The news is that the total number of shares outstanding would increase by 28%.

The aim of the issue is to reduce debt; its net debt at the end of Q3FY19 stands at Rs.1,06,367 crore.