Bharti Hexacom IPO: Public Issue Opens For Subscription; GMP Indicates Premium Listing; Check Status

Bharti Hexacom IPO, a subsidiary of Bharti Airtel, has commenced its subscription today, April 3rd, and is set to conclude on Friday, April 5th. Investors have been eyeing this offering as it marks the start of FY25 in the primary market.

The IPO price band has been established between Rs 542 to Rs 570 per share, with each share having a face value of Rs 5. Notably, on Tuesday, Bharti Airtel's subsidiary managed to amass a whopping Rs 1,924 crore from anchor investors, adding to the buzz surrounding this IPO.

The structure of the IPO allocation includes a reservation of at least 75% for qualified institutional buyers (QIBs), a maximum of 15% for non-institutional investors (NIIs), and a further 10% for retail investors.

Bharti Hexacom operates primarily in Rajasthan and the North Eastern telecommunications circles, offering a range of communication solutions including fixed-line telephony, internet, and mobile services under the renowned "Airtel" brand.

As per the Red Herring Prospectus (RHP), the company's listed peers include Bharti Airtel Ltd., Vodafone Idea Ltd., and Reliance Jio Infocomm Ltd. The RHP also indicates a Price/Earnings (P/E) ratio for Bharti Airtel Ltd. at 82.16.

Currently, the Bharti Hexacom IPO is witnessing moderate subscription figures. As of midday Wednesday, the overall subscription stands at 5%, with the retail portion being subscribed at 21%, and the NIIs portion at 6%. However, the QIBs segment is yet to see significant activity.

Specifically, bids have been placed for 22,12,392 shares against the 4,12,50,000 shares on offer, reflecting investor interest in the IPO. Retail investors have bid for 15,54,384 shares, while NIIs have bid for 6,54,472 shares, and QIBs have bid for 3,536 shares.

It's important to note that the IPO consists solely of an offer-for-sale (OFS), with no fresh issue component. Telecommunications Consultants India, the sole selling shareholder, plans to divest 7.5 crore equity shares, which is 15% of the OFS.

The Bharti Hexacom IPO is being managed by book running lead managers including SBI Capital Markets Limited, Axis Capital Limited, Bob Capital Markets Limited, ICICI Securities Limited, and IIFL Securities Ltd., with Kfin Technologies Limited acting as the registrar.

Analysts at Choice Equity Broking Pvt Ltd. have provided a positive review of the IPO, citing the benefits derived from Bharti Airtel's support and the favourable industry dynamics. They expect continued improvement in the company's operating and financial performance.

In the grey market, the Bharti Hexacom IPO GMP stands at a significant premium of +52. This indicates strong investor readiness to pay more than the issue price, with shares projected to list at Rs 622, a 9.12% increase from the upper end of the IPO pricing range.

Over the past 12 sessions, the grey market activity has shown an upward trend in the IPO GMP, with analysts indicating a range between Rs 30 to Rs 65, further suggesting anticipation for a robust listing.

Disclaimer: The opinions and suggestions provided above represent the views of individual analysts and do not reflect those of GoodReturns or the author. We recommend investors consult with certified experts before making any investment decisions.