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.
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 |
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 |
KPI | Values |
---|---|
Debt/Equity | 1.41 |
RoNW | 7.08% |
P/BV | 6.45 |
The objects of the Offer are to
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’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 |
₹ 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 |