Upcoming IPO In April: Bharti Hexacom’s Public Offer Coming Soon, Price Band Fixed; Key Details
The Bharti Hexacom Initial Public Offering (IPO) has stirred anticipation as it marks the inauguration of the fiscal year 2024-2025 (FY25) in the financial market.
With a price range ranging from Rs 542 to Rs 570 per equity share, investors are eyeing the opportunity to participate in this significant event. Let’s delve into the comprehensive details and implications of this IPO.
Overview of the Offering
The Bharti Hexacom initial public offering (IPO) is scheduled to begin subscriptions on Wednesday, April 3, and end on Friday, April 5. The allocation to anchor investors is scheduled for Tuesday, April 2, setting the stage for institutional participation. Notably, the IPO comprises only an offer-for-sale (OFS) component, with no fresh issue. The selling shareholder, Telecommunications Consultants India, aims to divest 7.5 crore of equity shares, constituting 15% of the OFS.
Key Details and Dates
The IPO’s lot size is 26 equity shares, with multiples of 26 equity shares thereafter. Qualified institutional buyers (QIBs) have been earmarked a minimum of 75% of the offer, while non-institutional investors (NIIs) can access up to 15%, and retail investors up to 10%. The basis of allocation is tentatively set for Monday, April 8, followed by refunds commencing on Wednesday, April 10. On the same day, shares are anticipated to be credited to the demat accounts of allottees. The listing of Bharti Hexacom shares on the BSE and NSE is projected for Friday, April 12.
Company Profile
Customers in Rajasthan and the North East telecom circles in India, which include states like Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura, are the main target market for Bharti Hexacom’s communication solutions. Its services encompass fixed-line telephone, broadband, and consumer mobile services under the renowned brand ‘Airtel’. With a customer-centric approach, the company has established itself as a prominent player in the telecommunications sector.
Financial Performance and Outlook
In assessing Bharti Hexacom’s financial standing, investors have turned their attention to its performance metrics. As per the Red Herring Prospectus (RHP), the company’s listed peers include Bharti Airtel Ltd., Vodafone Idea Ltd., and Reliance Jio Infocomm Ltd. Notably, Bharti Airtel Ltd. boasts a price-to-earnings (P/E) ratio of 82.16, indicating its premium valuation compared to industry counterparts.
Despite challenges, Bharti Hexacom has demonstrated resilience, with revenue witnessing a commendable growth of 22.3% between March 31, 2022, and March 31, 2023. However, profit after tax (PAT) experienced a decline of -67.2% during the same period, highlighting areas for potential improvement. As the company navigates through dynamic market conditions, investors are keen to gauge its strategic initiatives and growth trajectory.
Lead Managers and Registrar
The IPO is spearheaded by esteemed lead managers, including SBI Capital Markets Ltd., Axis Capital Ltd., BOB Capital Markets Ltd., ICICI Securities, and IIFL Securities Ltd. Kfin Technologies Ltd. has been entrusted with the role of registrar, ensuring seamless coordination throughout the IPO process.
Bharti Hexacom
The Bharti Hexacom IPO represents a pivotal moment for both the company and the investors. With its strong market presence, diverse offerings, and strategic positioning, Bharti Hexacom has captivated the attention of stakeholders. As the IPO unfolds, it symbolises not just an investment opportunity but a testament to the resilience and innovation within India’s telecommunications landscape. Investors await eagerly to participate in this landmark event, poised to shape the trajectory of Bharti Hexacom in the years to come.
Ketan Kataria Goodreturns
source: goodreturns.in
