Bharti Hexacom Limited IPO

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Incorporated in 1995, Bharti Hexacom Limited is the largest mobile telephony service provider in Rajasthan and North East regions of India. It is a wholly-owned subsidiary company of Bharti Airtel Limited, offering broadband and fixed-line services. 

A major communications solutions provider, this company is launching its IPO with subscriptions starting on April 3rd, 2024.  The last date of application is April 5th, 2024. The tentative listing date on BSE and NSE is April 12th,  2024. The price range of this IPO will be between Rs. 542 and Rs. 570 per share. Before making an investment decision, read this blog carefully to learn the associated details concerning Bharti Hexacom Limited IPO.

Here is a brief overview of Bharti Hexacom Limited IPO:

IPO Open Date3rd April 2024, Wednesday
IPO Close Date5th April 2024, Friday
Issue TypeBook Built Issue IPO
Face ValueRs. 5 per share
Price BandRs. 542 to Rs. 570 per share
Minimum Lot Size26 equity shares
Total Issue SizeAmount aggregating up to Rs. 4,275 crore
Offer for SaleAmount aggregating up to Rs. 4,275 crore

About the Company

The market share of Bharti Hexacom Limited has been steadily increasing. With this growth, it may reach the number one position in the North East circle of India. The company is also recording consistent growth in its ARPU (Average Revenue Per User) and customer base. 

Bharti Hexacom relies on a mix of owned and leased towers and a strategic spectrum portfolio to provide cost-effective 5G services. It also has an extensive distribution network with retail outlets, small format stores, distributors and retail touchpoints.

Bharti Airtel Limited and Telecommunications Consultants are the shareholders in this company where the former has 70%, whereas the latter holds a 30% share in this company.

Bharti Hexacom Limited IPO is a 100% OFS (offer for sale). Therefore, the company will not receive any proceeds after the listing. Only the selling shareholders will get the funds received from the IPO. The company will get the benefit of listing in the stock market. The total offer size ofBharti Hexacom Limited IPO is worth Rs. 4,275 crore (at the upper price band) and the shareholders will sell up to 75,000,000 shares in this public issue.

IPO Timeline

Here are the important timelines of Bharti Hexacom Limited IPO that you should know before applying:

IPO Open Date3rd April 2024, Wednesday
IPO Close Date5th April 2024, Friday
Cut-off Time for UPI Mandate Confirmation5th April 2024 at 5 PM
Basis of Allotment8th April 2024, Monday
Initiation of Refunds10th April 2024, Wednesday
Credit of Shares to Accounts10th April 2024, Wednesday
Listing Date12th April 2024, Friday

Bharti Hexacom Limited IPO Lot Size

Follow this table to know the lot size of the issue:

ApplicationLotsSharesAmount
Retail Investor Minimum126Rs. 14,820
Retail Investor Maximum13338Rs. 1,92,660
Small HNI (Minimum)14364Rs. 2,07,480
Small HNI (Maximum)671,742Rs. 9,92,940
Big HNI (Minimum)681,768Rs. 10,07,760

Company Financials

These are the statements of Bharti Hexacom Limited for the previous 3 financial years:

Particulars for Financial Year Ending (Rs. In Millions)March 31, 2023March 31, 2022March 31, 2021
Total Assets1,82,5291,66,7431,50,035
Total Liabilities1,40,4341,30,1381,30,175
Total Expenses37,93335,91235,499
Total Revenue67,19254,94047,043
Profit/Loss After Tax5,49216,746(10,339)
EBITDA28,88418,98511,373

Strengths of the Company

These are the strengths of Bharti Hexacom Limited:

  • Bharti Hexacom Limited is a leading telecom provider in Rajasthan and North East India. It has a customer base of 27.1 million and the highest VLR market share in the North East circle. The company offers telecom services at a competitive price to acquire high-value customers. In addition, it has a plan to expand its fixed-line and broadband services in 90 cities through partnerships with local cable operators.
  • The company operates in telecom areas with a high-growth potential. ARPU (average revenue per user) is also growing faster than the national average in these circles. Government investments in infrastructure development projects like BharatNet and better air, rail, and road connectivity will further improve telecom opportunities in these circles.
  • The company has a network infrastructure with a mix of owned and leased towers. It gets benefits from its promoter Bharti Airtel Limited and Indus Towers (Airtel has invested in this company). Additionally, there are high entry barriers due to regulations, capital expenditure and competition which makes it difficult for new companies to replicate Bharti's infrastructure in its circle.
  • As of 31st December 2023, Bharti Hexacom Limited has 75 stores and 600+ distributors across the rural and urban areas of North East Circle and Rajasthan. Its distribution partners use the ‘Mitra’ app which helps to facilitate mobile recharges and new customer onboardings.

Risks Involved

These are some of the risks involved with the business of Bharti Hexacom Limited:

  • The company is highly dependent on selling its services in particular regions of India (Rajasthan and North East Circle). If any unfavourable conditions occur in those regions, it will negatively affect the overall business, financial condition and operations.
  • There are some ongoing legal proceedings against the company and its promoters. The company cannot assure that the outcome will go in its favour.
  • The company had some contingent liabilities as of 31st December 2023 which was not provided in their restated financial information.
  • The regulatory ceiling on pricing can decrease the revenue earned from telecom services. This, in turn, could lead to a reduction in the Average Revenue Per User (ARPU) of the company

Summing Up

Bharti Hexacom Limited IPO is going to be a Rs. 4,275 crore worth IPO at the upper price band. The offer for sale will remain open between 3rd April 2024 and 5th April 2024. If you are going to apply for this IPO, it is in your best interest to read the RHP document from SEBI’s website.

You must also note that IPO applications can be done only if you have a Demat account. Therefore, open your free demat and trading account with us and start your IPO journey.

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Frequently Asked Questions

What is the size of Bharti Hexacom Limited IPO?

Answer Field

The total aggregate size of Bharti Hexacom Limited IPO is Rs. 4,275 crore.

Who are the book-running lead managers of Bharti Hexacom Limited IPO?

Answer Field

SBI Capital Markets Limited, ICICI Securities Limited, BOB Capital Markets Limited, IIFL Securities Limited and Axis Capital Limited are the book-running lead managers of this IPO.

Who is the main shareholder in Bharti Hexacom Limited?

Answer Field

Bharti Airtel Limited is the main shareholder in Bharti Hexacom Limited with a 70% stake.

Who are the selling shareholders of Bharti Hexacom Limited IPO?

Answer Field

Telecommunications Consultants India Limited is the main selling shareholder of Bharti Hexacom Limited IPO.

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