28 February 2019 BHARTIs board has approved INR320b fund raise via an INR250b rights issue and INR70b (foreign denominated) perpetual bonds with equity credit. every 67 shares held) at a price of INR220/share (which is a steep ~30% discount to CMP). This implies 1,134m rights shares, resulting in post equity dilution of 22%. Since the rights issue is at a discount, the dilution in earnings should result in a correction of the stock price from INR318 now to INR296 over the record date. FY19 net debt stands at INR1,148b, with net debt/EBITDA of ~4.5x. However, post the INR250b fund raise, FY19 net debt/EBITDA would come down sharply to 3.5x with net debt of INR898b. Bharti Africa IPO (~USD1.5b or INR105b) and the 53.5% Bharti Infratel stake sale (INR290b) could help raise overall INR400b. This could further reduce net debt to ~INR475b (FY21E) with net debt/EBITDA of 1.6x.