Bharti Hexacom IPO opens on April 3: Check price band, lot size and other key details about first public issue of FY25

Telecom and broadband services provider Bharti Hexacom’s initial public offer (IPO) on April 3 will mark the start of the IPO season in the new financial year 2024-25 (FY25). Telecom major Bharti Airtel’s subsidiary seeks to raise around ₹4,275 crore from public investors. The IPO has created a lot of buzz even before the launch of the offer on Wednesday.

Here are the key factors to know about the Bharti Hexacom IPO before participating in the bidding process.

Bharti Hexacom IPO subscription

Bharti Hexacom IPO will open for subscription on April 3 on both the National Stock Exchange (NSE) and BSE. The issue will close for bidding on Friday, April 5. The company will invite bids from anchor investors ahead of the launch of the IPO on April 2.

To know more and pre-apply for this IPO, Click here

Bharti Hexacom IPO price band and issue size

Bharti Hexacom public offer comprises an entire Offer for Sale (OFS) of up to 7.5 crore shares. Public shareholder Telecom Consultant of India Ltd (TCIL) is selling 15% stake, or 7.5 crore equity shares, through the OFS.

Bharti Hexacom IPO price band has been fixed at ₹542-570 per share of face value of ₹5 each. The minimum lot size is 26 hares, aggregating to an application amount of ₹14,820 for retail investors.

The company has allotted 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.

SBI Capital Markets Limited, ICICI Securities Limited, Bob Capital Markets Limited, Axis Capital Limited, and IIFL Securities Ltd are the book-running lead managers.

Bharti Hexacom IPO allotment date and listing

Bharti Hexacom is expected to announce the share allotment on April 8 (Monday). Investors can check the status of share allotment on both NSE and BSE websites as well on the website of IPO registrar Kfin Technologies Limited. The company is expected to list its shares on NSE and BSE on April 12.

Bharti Hexacom IPO purpose

Bharti Hexacom is an OFS public offer and the entire proceeds of the IPO will go to public shareholder TCIL. The Delhi-based telecom engineering and consulting PSU which has business interests in the Middle-Eastern and African markets holds a 30% stake in Bharti Hexacom. Earlier, it had announced to sell 20% of its stake through the IPO but later trimmed the offer size to 15%. The government, being the promoter of TCIL, is likely to gain from the divestment of the stake in Bharti Hexacom.

About Bharti Hexacom

Bharti Hexacom provides telephony (mobile and landline) and broadband services in Rajasthan and North East telecom circles in India. Sunil Bharti Mittal-led Bharti Airtel holds a 70% stake in the company while state-owned TCIL holds the rest 30%.

The company derives most of the revenues from mobile telephony services offered under the Airtel brand in Rajasthan and North Eastern states of Manipur, Mizoram, Arunachal Pradesh, Meghalaya, Nagaland and Tripura. As of December 31, 2023, the company invested ₹206 billion towards capital expenditure in its future ready digital infrastructure.

Its average revenue per user (ARPU) for mobile services has increased from ₹135 for Fiscal 2021 to ₹155 for Fiscal 2022 to ₹185 for Fiscal 2023 to ₹197 for the nine months ended December 31, 2023.

To know more about IPOs listing, schedule and upcoming IPOs, click here