Bharti Hexacom IPO to open on April 3; check price band, lot size and details

The initial public offering (IPO) of Bharti Hexacom opens for bidding on April 3, Wednesday, 2024. Investors can subscribe to the issue till Friday, April 5, 2024. The company will be offering its shares in the fixed price band of Rs 542-570 apiece.

Investors can apply for a minimum of 26 equity shares and its multiples thereafter.

Bharti Hexacom, incorporated in 1995, provides fixed-line telephone and broadband services to customers in Rajasthan and North East telecom circles in India. The company provides services in states such as Rajasthan and Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.

The issue is entirely an offer-for-sale (OFS) by Telecommunications Consultants India, which is offering 7.5 crore equity shares, amounting to Rs 4,275 crore, at the upper end of the price band. The company will not receive any proceeds from the issue. The anchor book for the issue will open on Tuesday, April 2.

Bharti Airtel is the promoter company of Bharti Hexacom, which holds 70 per cent stake, or 35 crore equity shares, of the company, while remaining 30 per cent stake, or 15 crore equity shares are owned by non-promoter Telecommunications Consultants India.

Bharti Hexacom had invested Rs 206 billion in digital infrastructure capital expenditures to be future-ready by December 31, 2023. The company has 2.71 crore customers across 486 census towns. There were 616 distributors and 89,454 retail touchpoints in the distribution network as of December 31, 2023.

Bharti Hexacom reported a net profit of Rs 281.80 crore with a revenue of Rs 5,420.80 crore for the nine months ended on December 31, 2023. The company reported a net profit at Rs 549.20 crore with a revenue of Rs 6,719.20 crore for the financial year ended on March 31, 2023.

Bharti Hexacom has reserved 75 per cent of the net offer for qualified institutional investors (QIBs), while non-institutional investors (NIIs) will have 15 per cent of shares reserved for them. Retail investors will have the remaining 10 per cent of the net issue reserved for them.

SBI Capital Markets, Axis Capital , BoB Capital Markets, ICICI Securities and IIFL Securities are the book running lead managers of the Bharti Hexacom IPO, while Kfin Technologies is the registrar for the issue. Shares of the company are likely to be listed at both BSE and NSE on April 10, Wednesday as the tentative date of listing.