Bharti Hexacom reveals IPO price band for upcoming stake sale
Bharti Hexacom, a subsidiary of the telecom giant Bharti Airtel, has set the price band for its initial public offering (IPO) at Rs. 542-570 per share. The public issue is set to launch on April 3 and wrap up on April 5, making it the inaugural IPO of the new financial year FY25. The company aims to raise Rs. 4,275 crore from this stake sale.
IPO exclusively includes offer-for-sale part
The Bharti Hexacom IPO is entirely composed of an offer-for-sale (OFS), excluding any fresh issue component. Telecommunications Consultants India, the sole public shareholder of the company, plans to sell off 7.5 crore equity shares or a 15% stake in the OFS. Bharti Airtel, Bharti Hexacom's promoter, currently owns a 70% stake in the company, while Telecommunications Consultants India holds the remaining 30%.
IPO allotment and trading
The company has set aside different segments of the issue size for various investor categories: 75% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs/HNIs), and the final 10% for retail investors. The allocation of IPO shares will be confirmed by April 8, with equity shares being transferred to successful investors' demat accounts by April 10. Trading in Bharti Hexacom IPO stocks will kick off on April 12.
A look at Bharti Hexacom's financial performance
With the upper price band in place, Bharti Hexacom's market cap will stand at Rs. 28,500 crore. Despite a significant drop in net profit by 67.2% to Rs. 549.2 crore for FY23, the company saw revenue growth of 21.7% from operations to Rs. 6,579 crore compared to the previous year. Its EBITDA rose by 53.6% to Rs. 2,785.7 crore, with a margin increase of 878 bps at 42.34% during the same period.
