Bharti Hexacom Limited

About Bharti Hexacom Limited

Incorporated in 1995, Bharti Hexacom Limited is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and North East telecommunication circles. 

It provides services under the brand name 'Airtel' and holds a market share of over 40% in Rajasthan and 52% in North East circle as of Q3 FY24. The company has an aggregate of 27.1 million customers across Rajasthan and North East circles as of 31 December 2023.

The company has a presence in 486 census towns across the states of Rajasthan, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura through its network of 616 distributors, 89,454 retail touchpoints, 90 retail outlets, and 24 small format stores as of 31 December 2023. It also has a network infrastructure of 24,874 network towers, of which 5,092 are owned, and 19,782 are leased from tower companies. 

Bharti Hexacom has 19,144 thousand data customers, including 18,839 thousand 4G and 5G customers. The company has consistently increased its average revenue per user (ARPU) from ₹135 in FY21 to ₹197 as of Q3FY24.

The government of India owns 30% of its outstanding equity share capital through Telecommunications Consultants India Limited (TCIL). The remaining 70% is owned by Bharti Airtel, a global communications solutions provider with over 500 million customers in 17 countries across South Asia and Africa. 

The company has seen a CAGR rise of over 12% in its revenue from operations between FY21 to FY23. Moreover, the telecom industry is expected to clock a CAGR of 8.5% to 9.5% between FY23 and FY28, which could benefit the company. 

And now, Bharti Hexacom Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale, and the selling shareholders will receive the money. Its shares will be listed on the NSE and BSE.   

Here are key details about the Bharti Hexacom Limited IPO:

Financial snapshot

Here’s a quick look at Bharti Hexacom Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Established leadership and a large customer base, which consumes ~23.1 GB of data per customer per month as of 31 December 2023. 
2. Operates in markets with high growth potential as the teledensity of Rajasthan and the North East market is lower than that of the country’s average, and its customer base is expected to grow at a CAGR of 1.4%-1.5% and 1%-1.5%, respectively, between FY23 and FY28.
3. Strong parentage of Airtel, which has a market share of 37% in India as of 31 December 2023. 
4. It operates in an industry with high entry barriers due to regulation of spectrum and requirement to purchase it through DoT auctions, high capital investments required for sustaining telecom services, hurdles in establishing network coverage across India, and competition with established players.
5. Extensive distribution and service network with 5G experience zones across all its large format retail stores.

Risks and threats

1. Concentrated in the area of Rajasthan and the North East circle, it accounted for 97% of its total revenue from operations in Q3 FY24.
2. Has incurred significant indebtedness with its total outstanding borrowings standing at ₹3,771 crore as of 31 December 2023.
3. Operates a capital intensive business with a capital expenditure of ₹2,557 crore as of Q3 FY24 with funding requirements for award of licences, purchase of spectrum, network expansion and upgrades, technological advancements and general corporate purposes. 
4. The company may not be able to sustain profitability in the future as it incurred a loss of ₹1,033 crore in FY21 as its revenue and profitability were impacted by low average revenue per user (ARPU), due to a tariff hike in November 2021.
5. The company cannot assure the maintenance of its passive infrastructure as 19,782 of its total 24,874 network towers are leased from Indus Towers and other companies as of Q3 FY24.
6. The churn rate in the mobile telecommunications industry in India is high making it difficult to retain customers.
7. Bharti Hexacom faces intense competition from Reliance Jio Infocomm Limited, Vodafone Idea Limited and BSNL.

Bharti Hexacom Limited IPO details

|Bharti Hexacom Limited IPO date

According to the offer document filed by the company with the SEBI, the Bharti Hexacom IPO’s opening date – in other words, the Bharti Hexacom IPO launch date – will be 3rd April 2024. The Bharti Hexacom IPO closing date is 5th April 2024. After this, investors will be updated about the allotment status on 8th April 2024.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 10th April 2024. The Bharti Hexacom IPO listing date is 12th April 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

|Bharti Hexacom Limited IPO Price Band

The IPO is an offer for sale. The Bharti Hexacom IPO price band has been set between ₹542 and ₹570 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Bharti Hexacom IPO listing price will be determined on 12th April 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

|Bharti Hexacom Limited IPO Lot size

The Bharti Hexacom IPO details have been declared. The Bharti Hexacom IPO lot size is set at 26 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Bharti Hexacom IPO issue size is approx ₹4,275 crore. 

How to pre-apply for the Bharti Hexacom Limited IPO?

You can pre-apply for the Bharti Hexacom Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Bharti Hexacom Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Bharti Hexacom Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Bharti Hexacom Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Bharti Hexacom Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Bharti Hexacom Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Bharti Hexacom Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Bharti Hexacom Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Bharti Hexacom Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Bharti Hexacom Limited IPO

To apply for the Bharti Hexacom Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Bharti Hexacom Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Bharti Hexacom Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.