IPO Launch Date, Evaluation, Pricing, and Allocation Particulars of Bharti Hexacom

Bharti Hexacom IPO Update: The scheduled IPO date for Bharti Hexacom is set for April 3rd, with the offering slated to conclude on April 5th. The IPO aims to generate approximately ₹4,275 crores, consisting of a fresh issue of ₹[.] crores and an offer for sale of up to 75,000,000 equity shares priced at ₹5 each. The allotment breakdown includes 10% for retail investors, 75% for Qualified Institutional Buyers (QIB), and 15% for High Net Worth Individuals (HNI).

Bharti Hexacom operates as a telecommunications solutions provider, catering to consumer mobile, fixed-line telephone, and broadband services primarily in the Rajasthan and North East telecom circles of India. This includes states such as Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. Operating under the renowned brand ‘Airtel’, the company is focused on premiumizing its service portfolio by acquiring and retaining high-quality customers. They prioritize customer experience through an omni-channel approach and utilize data science to enhance service delivery.

With a commitment to digital innovation, Bharti Hexacom offers a range of digital solutions to boost customer engagement. Their Airtel Black proposition provides differentiated customized offerings including family and converged plans, contributing to an ongoing enhancement of their revenue market share over the last three fiscal periods. The company implements prudent cost optimization strategies to bolster profitability and maintains an efficient capital structure with a comfortable leverage position. They consistently invest in expanding their network, advancing technology, and making judicious spectrum investments. By September 30, 2023, they had invested ₹203 billion in capital expenditure toward future-ready digital infrastructure.

Bharti Hexacom boasts an extensive distribution and service network across its operational regions. Over the six months ending September 30, 2023, and the past three fiscal years, they established 18 retail outlets and 8 small-format stores, expanding their reach to 88 cities by September 30, 2023. Their distribution network, as of September 30, 2023, comprised 617 distributors and 88,586 retail touchpoints. Additionally, they benefit from synergies derived from their association with their Promoter, Airtel, leveraging its extensive digital infrastructure and services to enhance their own offerings.

Bharti Hexacom IPO Details

IPO Date April 3, 2024 to April 5, 2024
Listing Date [.]
Face Value ₹5 per share
Price Band ₹542 to ₹570 per share
Lot Size 26 Shares
Total Issue Size 75,000,000 shares (aggregating up to ₹4,275.00 Cr)
Offer for Sale 75,000,000 shares of ₹5 (aggregating up to ₹4,275.00 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Share holding pre issue 500,000,000
Share holding post issue 500,000,000

Bharti Hexacom IPO Timeline (Tentative Schedule)

IPO Open Date Wednesday, April 3, 2024
IPO Close Date Friday, April 5, 2024
Basis of Allotment Monday, April 8, 2024
Initiation of Refunds Wednesday, April 10, 2024
Credit of Shares to Demat Wednesday, April 10, 2024
Listing Date Friday, April 12, 2024
Cut-off time for UPI mandate confirmation 5 PM on April 5, 2024

Key Performance Indicator

KPI Values
Debt/Equity 1.41
RoNW 7.08%
P/BV 6.45

Objects of the Issue (Bharti Hexacom IPO Objectives)

The objects of the Offer are to

  1. To carry out the Offer for Sale of up to 75,000,000 Equity Shares by the Selling Shareholder; and
  2. Achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Bharti Hexacom IPO Review (Apply)

The company is having strong parentage of “Airtel” group. Its one-time accounting adjustments kept the net profit on de-growth mode, but at the gross level, it marked growth. Based on 9M-FY24 earnings, the issue appears fully priced. It enjoys virtual leadership in the telecom circles it is operating and is confident of maintain the lead. Investors may park funds for the medium to long term rewards.

Bharti Hexacom Limited Financial Information (Restated Standalone)

Bharti Hexacom Limited’s revenue increased by 22.3% and profit after tax (PAT) dropped by -67.2% between the financial year ending with March 31, 2023 and March 31, 2022.

Period Ended 31 Dec 2023 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets (₹ Crore) 19,603.00 18,252.90 16,674.30 15,003.50
Revenue (₹ Crore) 5,420.80 6,719.20 5,494.00 4,704.30
Profit After Tax (₹ Crore) 281.80 549.20 1,674.60 1,033.90
Net Worth (₹ Crore) 3,978.80 3,972.20 3,573.20 1,898.70
Reserves and Surplus (₹ Crore) 4,166.10 3,959.50 3,410.50 1,736.00
Total Borrowing (₹ Crore) 6,253.00 6,269.30 7,198.30 5,975.20
Amount in ₹ Crore

Bharti Hexacom Company Financial Report

₹ in Crores
Year Revenue Expense PAT
2021 ₹4704.3 ₹3549.9 ₹1033.9
2022 ₹5494.0 ₹3591.2 ₹1674.6
2023 ₹6719.2 ₹3793.3 ₹549.2
December 2023 ₹5420.8 ₹2737.4 ₹281.8

Bharti Hexacom Company Financial Report

  • SBI Capital Markets Limited
  • Axis Capital Limited
  • Bob Capital Markets Limited
  • ICICI Securities Limited
  • Iifl Securities Ltd