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Airtel’s Bharti Hexacom Lists At 32% Premium

Bharti Hexacom debuted on the stock market with a strong listing at ₹755 on Friday, a 32.5% premium over its initial public offering (IPO) price.

What Happened: Raising ₹4,285 crore, the IPO drew substantial interest, with bids exceeding the number available by more than 30 times, particularly from qualified institutional buyers (QIBs) whose quota was subscribed 48.57 times. Non-institutional investors followed at 10.52 times, while retail investors subscribed 2.83 times.

The IPO involved only an offer-for-sale (OFS) by Telecommunications Consultants India (TCIL), the sole public shareholder, which sold 7.5 crore equity shares or a 15% stake. Consequently, Bharti Hexacom will not receive any proceeds from the issue, as all funds go directly to TCIL.

TVR INSTITUTE

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Bharti Hexacom’s IPO is the largest since Mankind Pharma Ltd’s ₹4,330 crore offering last year.

As noted in a Bloomberg report, the success of this IPO could rejuvenate a market that has recently seen smaller IPOs, typically under $100 million (₹833 crore), which have nonetheless garnered robust interest from retail investors and experienced post-listing surges.

About Bharti Hexacom: Established on April 20, 1995, as a subsidiary of Bharti Airtel (NS:BRTI), Bharti Hexacom provides mobile services in Rajasthan and Northeast India. It commands significant market shares in these regions and aims to expand its 5G services across all urban areas by March 2024.

Despite increased tax costs and some losses impacting profits, the company continues to show strong operational revenue growth, affirming its strong footing in the telecom sector.

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Bharti Hexacom is a fixed-line telephone and broadband service provider in India, headquartered in India. It was founded in 1995 and is a subsidiary of Bharti Airtel, one of India’s leading telecommunication companies . Bharti Hexacom operates in Rajasthan and North Eastern telecom circles of India.

Here’s a quick summary of Bharti Hexacom:

Market Leader: The company has a significant market share in Rajasthan and the Northeast telecom circles .
Financials: As of April 15, 2024, Bharti Hexacom has a market capitalization of ₹28,339 Cr. It offers a dividend yield of 0.00% with a Return on Equity (ROE) of 13.4% .
Recent IPO: The company recently went public with an Initial Public Offering (IPO) in April 2024. The issue price was set at ₹542 to ₹570 per share.