Bharti Hexacom IPO opens today; should you subscribe? Check price band, GMP, recommendations & more | India Business News


Bharti Hexacom IPO: The initial public offering (IPO) of Bharti Hexacom opened for subscription on Wednesday. Bharti Hexacom IPO The fund has been opened for subscription following a successful anchor round, where leading investors such as Capital Group, Fidelity Funds, ADIA and Morgan Stanley showed strong interest and contributed over Rs 1,900 crore.

Bharti Hexacom IPO Details:

According to ET report, Bharti Hexacom IPO The offering is purely an offer-for-sale (OFS), in which no new equity is issued. sole public shareholder, Telecom Consultant India (TCI), will sell 7.5 crore equity shares representing 15% stake through OFS.
Sunil Mittal-led telecom company Bharti Airtel holds 70% of Bharti Hexacom, equivalent to 35 crore shares. The remaining 30% ownership, equivalent to 15 crore equity shares, is held by the non-promoter. TCIL,
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Bharti Hexacom IPO Recommendation

Citing the company's strong parentage, established brands and presence in high-growth markets, analysts have advised investors to subscribe to the Rs 4,275 crore issue.
Marwari Financial Services said, “Considering FY24-yearly EPS of Rs 7.52 on a post-issue basis, the company will be listed at a P/E of 75.80 times with a market cap of Rs 28,500 crore, while its peer Bharti Airtel is doing business. At a P/E of 63.3x. We give 'Subscribe' rating to this IPO as it is available at reasonable valuations compared to its peers.

Bharti Hexacom IPO Price Band

The IPO, which closes on April 5, has each share priced between Rs 542 and Rs 570, with investors able to bid for 26 shares in one lot.

bharti hexacom ipo gmp

Before the issue launch, the company's shares were trading at a premium of Rs 40 in the unlisted market.

About Bharti Hexacom

Bharti Hexacom operates mobile services in Rajasthan and North-Eastern regions of India. Airtel will retain its majority stake in the subsidiary. The North-East telecom circles include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.
The company has a spectrum portfolio comprising a diverse range of mid-band spectrum, facilitating the provision of 5G Plus services to its customers.
For the six months ending September, the company reported revenue of Rs 3,420 crore, compared with Rs 3,167 crore a year ago. However, profit declined from Rs 195 crore to Rs 69 crore during the same period.
The company's revenue has shown a compound annual growth rate (CAGR) of 19.51% between FY21 and FY23.
In terms of average revenue per user (ARPU), Bharti Hexacom grew from Rs 135 in FY21 to Rs 195 in the six months ending September 2023. As of September 2023, the company had a total of 29.1 million customers across both regions.

lead manager

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

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