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Bharti Hexacom IPO Details:
As per an ET report, Bharti Hexacom’s IPO is solely an offer-for-sale (OFS), with no new equity issued.The sole public shareholder, Telecommunications Consultants India (TCI), will sell 7.5 crore equity shares, representing a 15% stake through the OFS.
Sunil Mittal-led telecom company Bharti Airtel owns 70% of Bharti Hexacom, which equals 35 crore shares. The remaining 30% ownership, equivalent to 15 crore equity shares, belongs to non-promoter TCIL.
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Bharti Hexacom IPO Recommendation
Analysts recommend investors to subscribe to the Rs 4,275 crore issue, citing the company’s strong parentage, established brand, and presence in high-growth markets.
Marwadi Financial Services stated, “Considering the FY24-annualized EPS of Rs 7.52 on a post-issue basis, the company will list at a P/E of 75.80 times with a market cap of Rs 28,500 crore, whereas its peer Bharti Airtel is trading at a P/E of 63.3 times. We assign a ‘subscribe’ rating to this IPO as it is available at a reasonable valuation compared to its peers.”
Bharti Hexacom IPO Price Band
The IPO, closing on April 5, offers shares priced between Rs 542 and Rs 570 each, with investors able to bid for 26 shares in one lot.
Bharti Hexacom IPO GMP
Before the issue launch, the company’s shares traded at a premium of Rs 40 in the unlisted market.
About Bharti Hexacom
Bharti Hexacom operates mobile services in Rajasthan and the Northeast regions of India. Airtel will maintain its majority stake in the subsidiary. The Northeast telecommunication circles include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
The company has a spectrum portfolio featuring a diverse range of mid-band spectrum, facilitating the provision of 5G plus services to its customers.
For the six months ending in September, the company reported revenue of Rs 3,420 crore, compared to Rs 3,167 crore a year earlier. However, profits decreased 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 improved from Rs 135 in FY21 to Rs 195 in the six months ending September 2023. As of September 2023, the company had amassed a total of 29.1 million customers across both regions.
Lead managers
SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are the book-running lead managers for the issue.
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