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IPO Overview: Bharti Hexacom Limited
The new financial year is just started i.e. financial year 2025 and Bharti Hexacom Ltd is going to be the first IPO of the new financial year.
It’s Bharti Hexacom Ltd IPO will open on April 3rd and will remain open till April 5th of April 2024. The price band has been set at 542 to 570, the offer size is 4,275 CR rupees and it’s a complete offer for sale where the Government of India is looking to sell around 7.5 CR shares valued at 570 upper band.
if you see the valuation comes to around 4,275. Now the potential market cap of this company on listing at the upper end could be around 28,500 CR rupees. Bharti Hexacom is Bharti Airtel owns 70%, While the government owns 30%.
Bharti Hexacom is a Telecom company licensed Telecom operator in only two circles in Rajasthan and Northeast. There are 22 circles in India of which Bharti Hexacom operates two circles Under the brand name of Bharti Airtel. The northeast region, includes Six States Arunachal Pradesh, Manipur, Mizoram, Nagaland, Tripura etc.
Bharti Hexacom owns Spectrum in Rajasthan and Northeast and these spectrums have validity anywhere between 2030 to 2042. which means that there is no upcoming major capital expenditure at least in terms of spectrum for this company going forward.
The objective of the Issue.
This IPO will be a full offer for the sale of Indian Hexacom Limited and there will be no fresh issue.
Offer for Sale means that the promoter entity will raise money by selling some stake and the promoter entity will not invest the money nor will the company own the company. In Bharti Hexacom there are two main promoters of the company 70% Stake with Airtel India and a 30% stake with the government i.e. Telecom Consultants India, it is the only public shareholding company which holds 7.5 crores of Equity shares i.e. up to 15% stake. will be sold through this OFS.
After the launch of this IPO, the stake of the parent firm Bharati Airtel will remain the same at 70%, but the stake of TCIL, a government-owned company stake will reduce by 30% to 15%. i.e. we can bid on the remaining 15%, HNI Investors, Retail Investors, and Non Institutional Investors.
Bharti Hexacom Limited IPO Important Dates
| IPO Open Date | Wednesday, April 3, 2024 |
| IPO Close Date | Friday, April 5, 2024 |
| Basis of Allotment | Monday, April 8, 2024 |
| Initiation of Refunds | Wednesday, April 10, 2024 |
| Credit of Shares to Demat | Wednesday, April 10, 2024 |
| Listing Date | Wednesday, April 12, 2024 |
Bharti Hexacom Limited IPO Price Band Details
- The face value of each share is ₹5.
- Investors can bid between ₹542 to ₹570 per share during the IPO.
- The minimum number of shares you can apply for is one lot of 26 shares.
- The minimum amount required for investment is ₹14,820 per lot.
- The total number of shares offered is 75,000,000 shares, amounting to ₹4275 crore.
- The shares will be listed on the BSE, NSE Exchange.
Bharti Hexacom Limited Financial Details
| Period Ended | Assets | Revenue | Profit After Tax (PAT) | Net Worth | Reserves & Surplus | Total Borrowing |
|---|---|---|---|---|---|---|
| Dec 31, 2023 | 19,603.00 | 5,420.80 | 281.80 | 3,978.80 | 4,166.10 | 6,253.00 |
| Mar 31, 2023 | 18,252.90 | 6,719.20 | 549.20 | 3,972.20 | 3,959.50 | 6,269.30 |
| Mar 31, 2022 | 16,674.30 | 5,494.00 | 1,674.60 | 3,573.20 | 3,410.50 | 7,198.30 |
| Mar 31, 2021 | 15,003.50 | 4,704.30 | -1,033.90 | 1,898.70 | 1,736.00 | 5,975.20 |
Key Observations:
- Assets: Bharti Hexacom’s assets have shown a steady increase over the past year, reaching ₹19,603 crore by December 31, 2023. This indicates potential growth and investment in the company.
- Revenue: There seems to be some fluctuation in revenue. Revenue increased significantly between Mar 2022 and Mar 2023 but dipped slightly in the quarter ending Dec 2023.
- Profit After Tax (PAT): PAT has been positive for the past two quarters (ending Sep 2023 and Dec 2023) after a negative PAT in Mar 2021. This is a positive sign, indicating profitability.
- Net Worth and Reserves & Surplus: Both net worth and reserves & surplus have increased marginally over the past year. This suggests that the company is reinvesting its profits back into the business.
- Total Borrowing: Total borrowing has remained relatively stable over the past year.
Bharti Hexacom GMP and Estimated Listing Price
| Date | IPO Price (₹) | GMP Price (₹) | Estimated Listing Price (₹) |
|---|---|---|---|
| Updating | ₹ | ₹– | ₹– |
| 10.04.2024 | ₹570.00 | ₹94 | ₹664 |
| 09.04.2024 | ₹570.00 | ₹96 | ₹666 |
| 08.04.2024 | ₹570.00 | ₹94 | ₹664 |
| 07.04.2024 | ₹570.00 | ₹82 | ₹652 |
| 06.04.2024 | ₹570.00 | ₹83 | ₹653 |
As per the grey market, Bharti Hexacom Limited GMP (grey market price) is Lowest ₹30 and highest ₹65, currently trading at ₹39 and investors expect listing at the price of ₹664, which is an estimated listing of 6.84% gain.
For more information check the company website: Bharti Hexacom Limited
DISCLAIMER: None of the financial information published herein should be construed as an offer to buy or sell securities or as advice in any way. All information published herein is for educational and informational purposes only and should not be relied upon as a basis for investment decisions under any circumstances. Any reader who makes decisions based on the information published herein does so solely at his or her own risk. Investors should be aware that any investment in equity markets is subject to unpredictable market-related risks.
FAQs
What does Bharti Hexacom Limited do?
Bharti Hexacom Limited is a communications solutions provider offering mobile services, fixed-line connections, and broadband internet under the Airtel brand.
When is the Bharti Hexacom IPO opening and closing?
The IPO is open for subscription between April 3, 2024 and April 5, 2024.
What is the price band for Bharti Hexacom IPO shares?
The price band is set at ₹542 to ₹570 per share.
Is Bharti Hexacom a subsidiary of Airtel?
While Bharti Hexacom operates under the Airtel brand, it’s not entirely clear from publicly available information if it’s a direct subsidiary.
