Bharti Hexacom IPO Lists with 32% Premium Over IPO Price

Tanushree Jaiswal Tanushree Jaiswal 12th April 2024 - 01:00 pm
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Bharti Hexacom, a key player in telecommunications, saw a stellar debut on the BSE and NSE platform, opening with a substantial premium of 32.4% at ₹755, surpassing analyst forecasts. The IPO, valued at ₹4,275 crore, witnessed overwhelming subscription interest, reaching nearly 30 times the allotted quota. Institutional investors led the charge, oversubscribing by 48.57 times, followed closely by non-institutional investors at 10.52 times.

Retail investors also displayed robust interest, subscribing 2.83 times. The anchor book attracted significant investments from top global players like Capital Group and Fidelity, raising ₹1,924 crore.

Bharti Hexacom's strong market entry reflects optimism in its growth trajectory. Established in 1995, the company provides fixed-line telephone and broadband services, serving 27.1 million customers across 486 census towns. Despite a 67.2% YoY decline in net profit for FY23, Bharti Hexacom's successful listing underscores investor confidence in its long-term potential.

About Bharti Hexacom IPO

Bharti Hexacom's first public offering was open for bidding from April 3-5. The offering was priced between ₹542 and ₹570 per share. The deal was completely an offer-for-sale (OFS), with no new equity issuance.

Telecommunications Consultants India (TCIL), the company's sole public stakeholder, sold 7.5 crore equity shares or a 15% interest through the OFS. Bharti Hexacom will not receive any profits as the offering is an OFS. The selling stakeholder in the corporation will receive all of the money.

Read more about Bharti Hexacom IPO

Bharti Hexacom's Interesting Fact

Bharti Airtel, led by Sunil Mittal, owns 70% of the company, or 35 crore shares, with non-promoter TCIL holding the remaining 30%, or 15 crore equity shares. TCIL's holding has now been reduced to 15%, with public investors owning 15% post-IPO. 

Check Anchor Alocation for Bharti Hexacom IPO at 45%

What’s experts’ initiates take on Bharti Hexacom?

Domestic brokerage analysts estimate Bharti Hexacom's stock to possibly double in the next three to four years as a result of the 15-17% EBITDA compounding tale. It sees the firm as a mid-cap pure-play on cellular ARPU growth vs Bharti, which derives 25-30% of its revenue from non-India wireless operations.

To Summarize

Bharti Hexacom shares made an outstanding start on April 12, trading at a 32.4 percent premium to the IPO price of ₹570. The listing gains exceeded expert expectations of a 12-15 percent premium. Subscriptions exceeded the authorized quota by over 30 times. Institutional investors led the way, oversubscribing 48.57 times, followed by non-institutional investors at 10.52 times.

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