The Bharti Airtel share price sinked in early trade today after the telecom operator approved fund raising plans of up to Rs 32,000 crore through a mix of rights issue and bond. The move will arm the company with firepower to take on market competition intensified by Reliance Jio and help it cut debt.

Bharti Airtel share is the top loser on Sensex, Nifty today. On Nifty, the stock fell 4.13% to 302 level. Bharti Airtel’s share price fell 4.26% to 320.50 compared to the previous close of 317.95 on the BSE. Bharti Airtel’s share has fallen 2.49% since the beginning of the year and lost 28.53% during the last one year. Bharti Airtel’s stock has been losing for the last two days and has fallen 4.64% during the period.

20 of 26 brokerages rate Bharti Airtel share “buy” or ‘outperform’, four “hold” and two “underperform”, according to analysts’ recommendations tracked by Reuters.

The Bharti Airtel share price was trading below its 50-day and 200 day moving average of 313 and 324 levels, respectively. Bharti Airtel share saw turnover of Rs 17.52 crore with 5.71 lakh shares changing on the BSE.

Even after the firm cleared fund raising of Rs 32,000 crore, the stock was the top loser on both Sensex and Nifty.

The fall in the stock price can be attributed to the huge discount at which the rights issue is being offered. The rights issue is priced at Rs 220 per share, a 30.8% discount to the stock’s last closing price of 317.95.

The discount during the rights issue will lead to a reduction in earnings per share (EPS). Citi said post the rights issue, the total number of shares outstanding would increase by 28% , implying 22% EPS dilution.

Bharti Airtel said the Board of Directors have “approved the fund raising of up to Rs 32,000 crore through rights issuance of up to Rs 25,000 crore and Perpetual Bond with equity credit upto Rs 7,000 crore”.

The terms of the rights issue cleared by the Board include price of Rs 220 per fully paid equity share (a premium of Rs 215 per fully paid equity share over face value of Rs 5 per share); and a rights entitlement ratio of 19 shares for every 67 shares held by eligible shareholders, the statement added.