Bharti Hexacom IPO opens this week. 10 things to know before subscribing to the issue

The initial public offering (IPO) of Bharti Hexacom will open for subscription on April 3. The issue closes on April 5. Through the public offer, the company plans to raise around Rs 4,275 crore. Here are 10 things to know about Bharti Hexacom IPO before subscribing to the issue.

1) What is the business overview of Bharti Hexacom?

Bharti Hexacom runs mobile services in Rajasthan and the Northeast circles of India. The northeast telecommunication circles in India comprise the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. As of September 2023, the company had an aggregate of 29.1 million customers across both circles.

2) What is the industry overview of Bharti Hexacom?

The customer base in the Rajasthan circle is expected to grow at 1.4%-1.5% CAGR between 2023 and 2028, to reach 69.0-69.5 million, with a teledensity of 82%-83%. By fiscal 2028, the number of internet customers is projected to reach 62.5-63.0 million from 46.9 million in FY23, clocking a CAGR of approximately 6%.

3) What is the size of the Bharti Hexacom IPO?

Bharti Hexacom IPO consists solely of an offer-for-sale (OFS) component, without any fresh issue of shares. Telecommunications Consultants India (TCIL), the sole public shareholder in the company, will offload 7.5 crore equity shares or a 15% stake in the OFS.

4) What is the price band for Bharti Hexacom IPO?

Bharti Hexacom has fixed a price band of Rs 542-570 per share for its maiden public offer. At the upper end, the company plans to raise Rs 4,275 crore.

5) What is the structure of Bharti Hexacom IPO?

About 75% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.

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6) How is the financial performance of Bharti Hexacom?

For the six months ended September, Bharti Hexacom reported a revenue of Rs 3,420 crore, compared to Rs 3,167 crore a year ago. However, profit dropped to Rs 69 crore from Rs 195 crore a year ago. From an average revenue per user (ARPU) of Rs 135 in FY21, the company has managed to improve this to Rs 195 during the six months ended September 2023.

7) What are the objects of Bharti Hexacom IPO?

The funds raised through the IPO will entirely go to the selling shareholder TCIL.

8) What is the current GMP of Bharti Hexacom?

According to market analysts, the current GMP of Bharti Hexacom is Rs 40 in the unlisted market.

9) Who are the book-running lead managers for the Bharti Hexacom IPO?

SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are the book-running lead managers to the issue.

10) When is the share allotment and listing date of Bharti Hexacom IPO?

The share allotment for the IPO will be finalised on April 8 and the estimated listing date is April 12.

Roy Walsh

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