Bharti Hexacom Secures Rs 1,924 Crore from Anchor Investors Pre-IPO

New Delhi, Apr 2 - In a significant move marking the commencement of the fiscal year 2024-25's first public offering, Bharti Airtel's subsidiary, Bharti Hexacom, has successfully raised approximately Rs 1,924 crore from anchor investors. The telecom entity disclosed that it allocated 3.37 crore equity shares at Rs 570 each to 97 funds, as per details shared on the Bombay Stock Exchange (BSE) website. This strategic allocation has resulted in a collection of Rs 1,923.75 crore from these investors.

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Among the notable anchor investors are global financial giants such as Small Cap World Fund Inc, BlackRock, Fidelity Funds, Wellington Management, and the Abu Dhabi Investment Authority. Additionally, investment firms like Schroder, Aberdeen, and Morgan Stanley Asia Singapore Pte have also participated. In a significant show of domestic confidence, 22 mutual funds have been allocated 1.39 crore shares, accounting for 41 per cent of the total shares distributed to anchor investors. Prominent mutual funds like SBI Mutual Fund MF and HDFC MF are part of this esteemed group.

The forthcoming public subscription set to commence on April 3 and conclude on April 5, is priced between Rs 542 to Rs 570 per share. Bharti Hexacom's Initial Public Offering (IPO), valued at Rs 4,275 crore, is structured as an offer for sale (OFS) involving 7.5 crore equity shares or a 15 per cent stake currently held by Telecommunications Consultants India Ltd. It's noteworthy that Bharti Hexacom will not receive any proceeds from this IPO since it is an OFS.

Bharti Airtel presently owns a 70 per cent stake in Bharti Hexacom, with the remaining 30 per cent held by Telecommunications Consultants India. The company offers telecommunication services across Rajasthan and the Northeastern regions of India. The IPO is structured with a reservation of about 75 per cent for qualified institutional buyers (QIBs), while non-institutional investors and retail investors have been allocated 15 per cent and 10 per cent of the issue size respectively.

Regulatory Approval and Lead Managers

Bharti Hexacom had initially filed its preliminary IPO papers with the Securities and Exchange Board of India (SEBI) on January 20 and received approval on March 11 to proceed with the public issue. The IPO's book running lead managers include esteemed institutions such as SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities.

This IPO marks a significant milestone for Bharti Hexacom and its parent company Bharti Airtel, showcasing their ability to attract substantial investment from both global and domestic financial entities. As the company prepares to open its shares to public subscription, the telecom sector watches closely for the impact this move will have on Bharti Hexacom's market position and future growth prospects.