The initial public offering of Bharti Hexacom will open on April 3 and close on 5th. Bharti Hexacom is owned by telecom giant Bharti Airtel. Investors will be able to trade in Bharti Hexacom IPO shhres with effect from April 12.
This is going to be the first IPO from Bharti Group in more than a decade. Bharti Group’s last IPO was Bharti Infratel in 2012. Bharti Infratel is now known as Indus Towers. This will also be the first IPO of financial year 2024-25.
Bharti Hexacom has reserved 75% of the issue size for qualified institutional buyers (QIBs), 15% for non-institutional investors and the remaining 10% for retail investors.
The date by which the company is expected to be finalised the basis of allotment of IPO is April 8. Further, 7.5 crore shares of the company are expected to be credited to the Demat account of successful investors by April 10, 2024.
Bharti Hexacom IPO is a full offer for sale (OFS) by Government-owned TCIL, which holds 30% shares of the company. TCIL will partially exit the company through the IPO. However, Bharti Airtel, the parent company of Bharti Hexacom, will not dilute its stake nor will there be any fresh issuance of shares for public offering.
Bharti Hexacom IPO approval
Bharti Airtel has received the approval from Securities and Exchange Board of India (SEBI) to launch IPO of its subsidiary Bharti Hexacom on March 19, 2024.
The parent company had filed the Draft Red Herring Prospectus (DRHP) with SEBI on January 19, 2023. The DRHP says Bharti Airtel is holding 70 percent stake (35 crore equity shares) of Bharti Hexacom. The remaining 30 percent shareholding (around 15 crore equity shares) is held by Telecommunications Consultants India (TCIL).
According to CNBC TV-18, TCIL will sell its 10 crore equity shares in Bharti Hexacom through the IPO. Since the IPO comprises an offer-for-sale (OFS) of 10 crore shares held by the selling shareholder (TCIL) only, the proceeds of the public offering will go to through IPO will go to TCIL only.
What does Bharti Hexacom do?
Bharti Hexacom is a communications solutions provider. It offers consumer mobile services, fixed-line telephone and broadband services in Rajasthan and North East telecommunications circles (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura).
As per the data quoted in DRHP, Bharti Hexacom’s revenue market share in Rajasthan circle was 40.3% and 52.1% in North East circle during the six months ended September 30, 2023.
The customer base in Rajasthan circle is likely to grow at 1.0-1.5% CAGR between Fiscals 2023 and 2028 to reach 68-68.5 million. The number of internet consumers in the circle is expected to reach 57-61 million, clocking a CAGR of 4-5%. In North East circle, the customer base is expected to grow at a CAGR of 1-1.5%. Internet customers are expected to grow at 4.5-5.5% CAGR between 2023 and 2028, as per DRHP.
Also Read: Can you improve your chances of getting an IPO allocation?
Bharti Hexacom IPO Size
According to CNBC TV18, the IPO is likely to value the company at over Rs 28,000 crore. The IPO size is expected to be around Rs 4300 crore.
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Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing in market-linked instruments.
This article was first published on March 20, 2024; updated with latest details on March 26, 2024
