Bharti Hexacom IPO sails through on final day, fully subscribed riding on retail demand

Bharti Hexacom IPO sailed through on the final day of subscription on Friday, April 5, on the back of demand from retail and non-institutional investors. The first IPO of the new fiscal year 2024-25 was booked 1.36 times on the last day of bidding, the NSE data until 10:30 am showed.

Bids for a total of 5.63 crore equity shares were received against 4.12 crore shares on offer, reflecting subscription of 1.36 times.

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Among the investors’ categories, retail individual investors placed bids for 1.06 crore shares against 75 lakh shares reserved for the category. Retail investors’ portion was booked 1.42 times. Non-institutional investors applied for over 2.71 crore shares against 1.12 crore shares on offer for the segment. The NII portion was booked 2.41 times.

The Bharti Hexacom IPO, which is an entirely Offer for Sale of 7.5 crore shares, received a lukewarm response from qualified institutional buyers so far. The QIBs portion was booked only 82% with bids for over 1.83 crore shares compared to 2.25 crore shares on offer.

Bharti Hexacom IPO gets weak response on first two days

Bharti Hexacom IPO received a lukewarm response from investors on the first two days of bidding. The IPO, which is the first public offer of any Bharti Airtel group company since 2012 when Bharti Infratel hit the capital markets, was booked just 35% on the first day. QIB portion was booked 29%, NII category by 36% and retail investors’ portion by 50%.

On the second day, applications flowed in from retail investors and NIIs with their portions getting fully subscribed at close of the bidding.

The IPO received a weaker-than-expected response from investors even as it was considered fairly valued. The company has set the IPO price band of the book built issue at ₹542-570 per share. The lot size for retail investors is 26 shares, requiring a minimum investment of ₹14,820.

At the cap price, the Bharti Hexacom IPO is valued at a profit-earning ratio (P/E ) of 75.8 times based on FY24 earnings. The issue size is ₹4,275 crore valuing the company at around ₹28,000 crore.

Bharti Hexacom raises ₹1,924 crore from anchor investors

Bharti Hexacom raised a total of ₹1,924 crore from anchor investors at the cap price of ₹570 per share. The company offered 45% of the issue size or 33,750,000 equity shares to anchor investors. Blackrock Global Funds, Smallcap World Fund, Pictet, Fidelity Funds, Capital Group, American Funds, Morgan Stanley, Abu Dhabi Investment Authority HSBCare among the anchor investors.

Bharti Hexacom IPO share allotment

Bharti Hexacom IPO opened for subscription on April 3, marking the start of IPO season in the new fiscal. The issue closes on Friday. The company is expected to finalise the share allotment on Monday, April 8. Bharti Hexacom shares are expected to be listed on BSE and the NSE on April 12.

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