The initial public offering (IPO) of Bharti Airtel’s subsidiary Bharti Hexacom will open for subscription on Wednesday, April 3. The issue closes on April 5. Through the IPO, the company plans to raise about ₹4,275 crore.
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The expected valuation of the company is likely to be over ₹28,000 crore.
Bharti Hexacom’s IPO will be the first public issue of the new financial year 2024-25 (FY25). This will also be the first IPO from the Bharti Group after over a decade.
The last IPO to have come out from the Bharti Group was Bharti Infratel, now known as Indus Towers, which was listed back in 2012.
Bharti Hexacom IPO GMP
Ahead of the IPO opening, the company’s shares are fetching a premium of ₹39 in the unlisted market.
However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
Bharti Hexacom IPO price band
The company will be selling its shares in the range of ₹542-570 per share. Investors can bid for a minimum of 26 equity shares in one lot and in multiples thereof.
Bharti Hexacom IPO size
The Bharti Hexacom IPO is entirely an offer for sale (OFS) with no fresh issue component. The company’s only public shareholder, Telecommunications Consultants India will offload 7.5 crore equity shares or a 15% stake in the OFS.
Promoter Bharti Airtel owns a 70% stake in the company and the remaining 30% stake or 15 crore equity shares are held by Telecommunications Consultants India
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Bharti Hexacom IPO structure
The company has set aside 75% of the issue size for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs/HNIs), and the remaining 10% for retail investors.
Bharti Hexacom IPO objectives
Since the issue is an OFS, Bharti Hexacom will not receive any proceeds. All the proceeds will be allotted to the selling shareholder in the company.
Company overview
Bharti Hexacom runs mobile services in Rajasthan and the Northeast telecommunication circles of India, which comprises Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. It has a market share of 40% in Rajasthan and 50% in the Northeast.
Bharti Hexacom, as per its annual report, is targeting to cover all the urban areas and a few pockets of rural areas with 5G services by March this year. Airtel’s 5G Plus offers up to 30 times faster download speeds than 4G, it claimed in its annual report adding that the 5G handset ecosystem is gradually evolving with more choices for customers at affordable price points.
For FY23, the Airtel unit recorded a net profit of ₹549 crore. Its revenue from operations remained strong rising 22% to ₹6,719 crore.
For the six months ended September, the company posted a revenue of ₹3,420 crore, compared to ₹3,167 crore in the same period a year ago. However, its net profit declined to ₹69 crore from ₹195 crore in the year-ago period. The profit was impacted by higher tax costs and exceptional loss.
Bharti Hexacom IPO BRLM
SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are the book-running lead managers to the issue. KFin Technologies is the registrar.
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Bharti Hexacom IPO listing date
Bharti Hexacom will finalise the basis of allotment of IPO shares by April 8 and investors can trade in the IPO shares from April 12.
