Bharti Hexacom IPO; Telecom Operator company IPO to begin from April 03; Key Details here

Bharti Hexacom is into Telecommunication Telecom Operator and is looking raise funds through Offer for Sale

Bharti Hexacom to raise around Rs 4,275 crores through public issue IPO

Bharti Hexacom IPO is a public offering of shares by Bharti Airte Limited. The IPO will open on April 03 and will close on April 05. The price band is ₹542 to ₹570 per share and the lot size is 26 shares. The issue size is ₹4,275. crore. The shares are expected to be listed on NSE, BSE on April 12 (^). Some additional information that you may find useful are: Revenue market share for the Rajasthan circle was 40.4%, 39.2%, 39.5%, 36.7% and 32.7%, while for the North East circle was 52.7%, 52.4%, 52.5%, 48.5% and 42.0% during 9MFY24 and 9MFY23 and FY23, FY22 and FY21, respectively. ARPU for mobile services increased from ₹135 for FY21 to ₹155 for FY22 to ₹185 for FY23 and further to ₹197 for the 9MFY24.: (**) - based on higher price band (^) indicative date

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Key Pointers of Bharti Hexacom IPO:

Promoters of the company are Bharti Airte Limited Currently promoters hold 70% stake in the company. While post-equity promoters stake will be 70.%

Company has not undertaken Pre-IPO placement.

• Company aims to raise between Rs 4,065 to 4,275 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) To carry out the Offer for Sale of up to 75,000,000 Equity Shares by the Selling Shareholder, constituting 15% of the pre-Offer paid up share capital of our Company; and 2) achieve the benefits of listing the Equity Shares on the Stock Exchanges. Company will not receive any proceeds from the Offer, and all such proceeds will go to the Selling Shareholder.
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 02-Apr-24.
• Price band for the IPO has been fixed at Rs 542 to 570 per share and bid lot are in multiple of 26 shares. The implied market cap post-issue at Rs 27,100 to 28,500 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on April 08 and share are expected to be listed on NSE, BSE on April 12.
• Company has direct peer competition in India'a Telecom segment. Peer include Bharti Airtel, Vodafone Idea and Reliance Jio Infocomm in India.
• SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, IIFL Securities has been appointed as Merchant Banker to the issue. KFin Technologies Ltd. has been appointed as official registrar of the issue.

About Bharti Hexacom Limited

Bharti Hexacom Limited

Established in 1995 as Hexacom Limited later changed to Bharti Hexacom Limited post manority stakte acquisition by Airtel in 2004. Company is a wholly owned subsidiary of Bharti Airtel Limited, wherein Bharti Airtel owns 70% stake in the company. Company is into Telecom space and is in communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, which comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. Copmany offer services under the brand ‘Airtel’.

Company doesn't own any fiber assets and pays as per use. Company is present in 486 census towns and had an aggregate of 27.1 million customers across both the circles.

Company has 51 retail stores, 24 small format stores to reach 90 cities in addition to it distributor network of 616 distributors and 89,454 retail touchpoints.

Business model includes revenues from Mobile services and Revenues from Home and Office services.

Revenue market share for the Rajasthan circle was 40.4%, 39.2%, 39.5%, 36.7% and 32.7%, while for the North East circle was 52.7%, 52.4%, 52.5%, 48.5% and 42.0% during 9MFY24 and 9MFY23 and FY23, FY22 and FY21, respectively. ARPU for mobile services increased from ₹135 for FY21 to ₹155 for FY22 to ₹185 for FY23 and further to ₹197 for the 9MFY24.

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About Industry

The customer base in the Rajasthan circle is expected to grow at 1.4%-1.5% CAGR between Fiscals 2023 and 2028, to reach 69.0-69.5 million, with a teledensity of 82%-83%. By Fiscal 2028, the number of internet customers is projected to reach 62.5-63.0 million from 46.9 million in Fiscal 2023, clocking a CAGR of approximately 6.0%. The customer base in the Northeast circle is expected to grow at 1.0-1.5% CAGR between Fiscals 2023 and 2028, to 13.2-13.5 million, with teledensity at 81%-82%. By Fiscal 2028, internet customers in the Northeast are projected to reach 12.5-13.5 million, at a CAGR of 6.0%-7.0%. (Source: CRISIL Report).

Source: SEBI, BSE, NSE, DRHP, IPO Status, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.