Bharti Airtel Limited (BSE:532454) is looking to onboard a strategic investor through allocation of preferential equity shares, which is scheduled to be discussed at its board meeting on January 28, 2022 according to sources. A source, who did not wish to be named, said the primary goal of the preferential share allocation is not influenced by any sort of liability pressure but is inclined towards onboarding a strategic partner aligned with the long-term business objectives of the company. "An issuance to usher in a strategic investor that boosts its enterprise/digital offerings will be seen positively; however, any large acquisitions will be viewed negatively," the report said.

Bharti Airtel has notified the exchanges that its board will on January 28, 2022 consider a proposal for issuance of equity capital through a preferential issue. However, it did not specify the quantum of the capital raise or its timing. "Given that Bharti's business does not need capital immediately, a preferential equity issuance could be due to a strategic investor entering Bharti Airtel or an acquisition by Bharti Airtel," the report said.