Bharti Hexacom IPO: GMP and Subscription Suggest Downside Ahead
Bharti Hexacom, a subsidiary of Bharti Airtel, is gearing up for its IPO debut on April 12. The subscription period for the IPO closed with robust demand, particularly from institutional investors. The IPO price has been set at ₹570 per share. The company primarily operates in Rajasthan and the North-East regions of India, offering communication solutions along with fixed-line telephone and broadband services.
Market analysts anticipate the share price to list approximately 10-12% higher than the IPO price. This positive outlook is supported by the strong demand seen in the grey market, where Bharti Hexacom shares are trading at a premium of ₹92. Factoring in this premium, the shares are expected to debut on the bourses at around ₹662 per share, marking a substantial increase of approximately 16.14% from the IPO price.
The IPO comprises solely of an offer-for-sale (OFS) segment, with Telecommunications Consultants India Ltd (TCIL) selling 7.5 crore equity shares, representing 15% of the OFS. Notably, the company will not receive any proceeds from the IPO, as it solely involves the sale of existing shares by TCIL.
The book running lead managers for the IPO include Axis Capital Limited, Bob Capital Markets Limited, ICICI Securities Limited, SBI Capital Markets Limited, and IIFL Securities Ltd. Kfin Technologies Ltd is appointed as the issue registrar, responsible for overseeing the allotment process.
The company’s focus on expanding its telecommunications offerings and leveraging the “Airtel” brand name to market its services bodes well for its future growth trajectory. Additionally, with the telecom industry witnessing steady growth in average revenue per user (ARPU) and ongoing technological advancements, Bharti Hexacom is positioned to capitalize on these opportunities.
Bharti Hexacom’s IPO is expected to witness a strong listing, driven by positive market sentiment and robust demand from investors. With its established presence in key telecom markets and strategic growth initiatives, the company is poised for a promising future in the telecommunications sector.
