Bharti Airtel subsidiary Bharti Hexacom to launch IPO on Apr 3, check key details here

Bharti Airtel shares were in focus on Tuesday after its subsidiary Bharti Hexacom announced the launch of its public offer of up to 7.5 crore equity shares on April 3.

Shares India’s second largest telecom services provider opened lower and fell further by 1.22% to hit a low of ₹1,221 per share on the NSE in morning deals.

Airtel later recovered some of the losses but the stock was still trading lower by 0.88% ₹1,225.25 apiece on the NSE at 10:40 am.

Bharti Hexacom, in which Bharti Airtel holds a 70% stake, announced a price band of ₹542-570 per share for its public offer, valuing the company at around ₹28,500 crore at the upper limit. The public offer will open for subscription on April 3 and close on April 5.

Bharti Hexacom IPO key details

The public issue of Bharti Hexacom is a complete offer for sale by existing shareholder Telecommunications Consultants India Ltd (TCIL) and there is no fresh issue component. Bharti Hexacom received Sebi’s final nod for IPO on March 11.

TCIL will divest around 15% or 7.5 crore equity shares through the offer for sale to raise around ₹4,270 crore at the upper end of the price band. TCIL holds a 30% stake in Bharti Hexacom.

Bharti Hexacom has set aside 75% of the issue size for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.

The company offers fixed-line telephone and broadband services in Rajasthan and North East telecom circles including Arunachal Pradesh, Meghalaya, Mizoram, Manipur, Tripura and Nagaland. It has 2.71 crore customers across 486 towns.

Bhartli Hexacom posted a net profit of ₹281.80 crore in the April-December period of FY24. Its revenue was ₹5,420.80 crore in the period. Its net profit stood at ₹ 549.20 crore in FY23 while revenue was ₹6,719.20 crore in 2022-23.