Bharti Hexacom IPO: Apply or Not? GMP, Key Dates, Subscription Status & More
The Bharti Hexacom IPO has garnered significant attention from investors, with subscription numbers indicating strong interest in the offering. On the second day of bidding, the IPO was subscribed 1.12 times overall, with retail investors and non-institutional investors (NIIs) showing enthusiasm. The qualified institutional buyers (QIBs) portion received a subscription of 82%. This followed a promising start on the first day, where the IPO was subscribed 34% overall, with higher subscription figures for the NII and retail segments.
Closing on April 5, the IPO offers shares in the price range of ₹542 to ₹570 per share. Bharti Hexacom, a subsidiary of Bharti Airtel, operates primarily in Rajasthan and the Northeast regions of India, providing internet, fixed-line phone, and mobile services. The company boasts a substantial infrastructure with owned and leased network towers, serving 486 towns in its operational areas.
Owned 70% by Bharti Airtel and 30% by the Indian government, Bharti Hexacom maintains similarities with its parent company but operates on a regional scale. However, it trades at a discount of approximately 12–15% compared to Bharti Airtel’s valuation. Listed peers include Bharti Airtel, Vodafone Idea, and Reliance Jio Infocomm.
On the third day, subscription numbers remained robust, with the IPO oversubscribed at 29.88 times overall. The retail portion saw 2.83 times subscription, while NIIs portion was oversubscribed 10.52 times, and QIBs portion an impressive 48.57 times.
The IPO comprises only an offer-for-sale (OFS), with the sole selling shareholder intending to sell 15% of the OFS. Despite being regionally focused, brokers suggest subscribing to the IPO, citing Bharti Hexacom’s leading position in its operational areas, consistent revenue growth, and favorable valuation compared to industry averages.
The Bharti Hexacom IPO presents an opportunity for investors to tap into a company with strong fundamentals and growth potential in its niche markets. With encouraging subscription numbers and positive recommendations from brokers, investing in the IPO could be an attractive option for those looking for exposure to the telecommunications sector and long-term growth prospects in the regions served by Bharti Hexacom.
