Bharti Hexacom listing: Shares list at premium of 32% to IPO price on NSE and BSE
Upstox
2 min read • Updated: April 12, 2024, 10:17 AM
Summary
Bharti Hexacom IPO, which listed at a premium of 32.4% on the NSE and the BSE, was entirely an offer for sale (OFS) of 7.5 crore shares. The company had raised ₹1,924 crore from anchor investors such as Fidelity, Capital Group, Blackrock and ADIA ahead of the public issue.
Bharti Hexacom IPO listing: Shares of Bharti Hexacom made a strong debut on the stock exchanges on Friday, April 12. The stock opened at a premium of 32.4% at ₹755 against the issue price of ₹570 per equity share on the National Stock Exchange (NSE) and the BSE.
The ₹4,275 crore initial public offering (IPO) of the telecom services provider was subscribed 29.88 times during the April 3-5 bidding period. The qualified institutional buyers brought 48.57 times the portion set aside for them, the non-institutional investors subscribed 10.52 times the reserved portion and the retail retail investors bid 2.83 times the quota allotted.
The IPO, which had fixed a price band of ₹542-₹570 per share, was entirely an offer for sale (OFS) of 7.5 crore shares. Bharti Hexacom had raised ₹1,924 crore from anchor investors such as Fidelity, Capital Group, Blackrock and ADIA ahead of the public issue. The company had allocated more than 3.37 crore shares, or 45% of the total issue size, to anchor investors.
About Bharti Hexacom
Bharti Hexacom, incorporated in 1995, provides mobile, fixed-line telephone and broadband services in Rajasthan and the North East telecom circles in India. under the brand name 'Airtel'.
As of December 31, 2023, the company has a presence in Rajasthan, Manipur, Arunachal Pradesh, Mizoram, Nagaland, Meghalaya, and Tripura through 616 distributors, close to 90,000 retail touchpoints, 90 retail outlets, and 24 small format stores. It also has 24,874 network towers, including 5,092 owned and 19,782 leased from tower firms.
In FY2023, Bharti Hexacom reported ₹6,579 crore revenue and ₹549 crore net profit. In comparison, its revenue from operations stood at ₹5,405.2 crore in FY 2021-22 and ₹4,602.3 crore in FY 2020-21.
According to the company's IPO papers, the customer base in Rajasthan is projected to grow at a compound annual growth rate (CAGR) of 1% to 1.5% between FY2023 and FY2028.
By FY2028, internet users will likely grow to 57 million-61 million from 46.9 million in FY2023, clocking a CAGR of 4%-5%. "The customer base in the Northeast circle is expected to grow at 1.0-1.5% CAGR between fiscals 2023 and 2028, to 13.0-13.5 million, with teledensity at 81-82%. By Fiscal 2028, internet customers in the Northeast are projected to reach 12-13 million, at a CAGR of 4.5-5.5%," the company said.
To know more about IPOs listing, schedule and upcoming IPOs, click here.