Bharti Hexacom IPO opens for subscription: Five things to know before you subscribe

The much-awaited initial public offering (IPO) of Bharti Hexacom Ltd, a subsidiary of telecom leader Bharti Airtel Ltd, opens for subscription today. This is the first IPO from the Bharti Group since Bharti Infratel was listed in December 2012.

The Bharti Hexacom IPO, which is also the first public issue in fiscal 2024-25, aims to raise ₹4,275 crore from public investors.

Here are the five things that you should know before you subscribe to the Bharti Hexacom Ltd IPO:

About Bharti Hexacom

Bharti Hexacom offers mobile, landline and broadband services in Rajasthan and North East telecom circles in India. Bharti Airtel owns a 70% stake in the company, while TCIL holds the remaining 30%.

The company derives most of its revenue from the mobile telephony services offered under the Airtel brand in Rajasthan and North Eastern states of Manipur, Mizoram, Arunachal Pradesh, Meghalaya, Nagaland and Tripura.

Its average revenue per user (ARPU) for mobile services increased to ₹185 for FY23 from ₹155 in FY22 and ₹135 in FY21. For the nine months ended December 2023, ARPU stood at ₹197.

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Bharti Hexacom IPO price band

The Bharti Hexacom IPO price band has been fixed at ₹542-570 per share of face value of ₹5 each. The lot size is 26 shares, which means retail investors need to bid for a minimum of 26 shares, and in multiples of that thereafter. This translates into a minimum retail application amount of ₹14,820.

Bharti Hexacom IPO issue size

The Bharti Hexacom IPO is open for subscription from April 3 to April 5. The public offer is entirely an offer-for-sale (OFS) of up to 7.5 crore shares. State-owned Telecom Consultant of India Ltd (TCIL) is offloading its 15% stake in the company through the issue.

Bharti Hexacom has reserved 75% of the issue size for qualified institutional buyers (QIBs), 15% of the issue for non-institutional investors (NIIs), and the rest 10% for retail investors.

Bharti Hexacom allotment and listing date

After the bidding closes on April 5, Bharti Hexacom should announce the share allotment status on April 8 (Monday). Successful bidders who are allotted Bharti Hexacom shares can expect them to be credited in their demat accounts by April 9 (Tuesday), with the remaining bidders receiving refunds in their bank accounts the same day.

The Bharti Hexacom stock is expected to list on the National Stock Exchange of India (NSE) and BSE on April 12 (Friday).

Bharti Hexacom IPO anchor book

Bharti Hexacom has already raised ₹1,923.75 crore from 97 institutional investors that participated in the anchor round on April 2.

According to a circular shared on exchanges, Bharti Hexacom has allotted 3.37 crore equity shares to anchor investors at ₹570 apiece.

The list of Bharti Hexacom anchor investors included names like Blackrock Global Funds, Smallcap World Fund, Capital Group, American Funds, Fidelity Funds, Abu Dhabi Investment Authority, BNP Paribas Trust Services Singapore, Morgan Stanley, HSBC, among others.

Besides that, 22 domestic fund houses including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, Axis Mutual Fund, Kotak Mutual Fund, UTI Mutual Fund, Tata Mutual Fund, among others, also participated in the Bharti Hexacom IPO.

Leading insurers like SBI Life Insurance, HDFC Life Insurance and ICICI Prudential Life Insurance Company also made it to the Bharti Hexacom IPO anchor book.

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