Bharti Airtel initiates IPO process for subsidiary Bharti Hexacom
Bharti Airtel is gearing up to take its subsidiary, Bharti Hexacom, public through an initial public offering (IPO), per CNBC-TV18. If that happens, it will be the first IPO from the Bharti Group in over a decade. Investment bankers Axis Capital, SBI Cap, IIFL, and ICICI Securities have been appointed to kick off the IPO process. The last IPO from the group was Bharti Infratel, now known as Indus Towers, back in 2012.
Valuation and timeline for Bharti Hexacom IPO
Insiders estimate Bharti Hexacom's valuation at around Rs. 20,000 crore, with the listing process expected to wrap up by early 2024. Bharti Airtel holds a 70% stake in the subsidiary, while the Indian government, through Telecommunication Consultants of India Limited (TCIL), owns the remaining 30%. The IPO aims to offer TCIL a partial or full exit from its investment in Bharti Hexacom.
Operations and services offered by Bharti Hexacom
Operating in the North East and Rajasthan circles of India, Bharti Hexacom provides extensive mobile phone services in these regions and offers broadband and fixed-line services in Rajasthan. In response to a query from CNBC-TV18 about the IPO process, a Bharti Airtel spokesperson said that the company regularly explores various modes of raising funds, including accessing capital markets. Shares of Bharti Airtel closed 0.08% lower at Rs. 970. The stock has risen 20% so far this year.
