Bharti Hexacom Shares Plunge Following Resignations Of 2 Directors Post IPO Success; Details Inside

Bharti Hexacom's Initial Public Offering (IPO), the company witnessed a setback as its share price plunged by nearly 4% during Monday's trading session. The decline ensued subsequent to the resignations of Sanjeev Kumar and Surajit Mandol from the company's board of directors on Friday, April 12, following the termination of the Shareholder's Agreement.

Bharti Hexacom commenced Monday's trading at Rs 785.05 per share on the Bombay Stock Exchange (BSE). Throughout the session, the stock oscillated between an intraday low of Rs 783 and a high of Rs 791. The downturn in share price came on the back of a stellar market debut last Friday, April 12, where the stock made a remarkable entrance on both the BSE and the National Stock Exchange (NSE).

Upon its debut on the NSE, Bharti Hexacom's shares opened at Rs 755, a 32.5% premium over the IPO's issue price of Rs 570 per share. Similarly, on the BSE, the stock opened at Rs 755.20, marking a 32.49% surge from the issue price. By the end of the trading session, the listing gain stood at 42.7%. This performance outstripped earlier forecasts by market analysts, who had predicted an opening share price ranging between Rs 650 and Rs 660 per share.

During the three-day subscription period leading up to the IPO, investors exhibited a robust interest in Bharti Hexacom. On the final day, qualified institutional buyers (QIBs) dominated the subscription, oversubscribing the issue by an impressive factor of 48.57. Non-institutional investors (NIIs) also displayed significant interest, subscribing 10.52 times, while retail investors demonstrated a healthy demand with a subscription rate of 2.83 times. The overall subscription status for the Bharti Hexacom IPO on day three stood at 29.88 times, as per data from the Bombay Stock Exchange (BSE).

The IPO, as outlined in the company's Red Herring Prospectus, comprised solely an offer-for-sale (OFS), with no fresh issue component. Telecommunications Consultants India, the sole selling stakeholder, aimed to divest 7.5 crore equity shares, constituting 15% of the OFS.

Bharti Hexacom operates as a communications solutions provider catering to the telecom circles in North-East India, encompassing Rajasthan, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. The company offers broadband services alongside fixed-line telephony under the brand name Airtel.

As of 11:45 am on Monday, Bharti Hexacom's shares were trading at Rs 807.80 apiece on the National Stock Exchange (NSE), reflecting a decline of nearly 1% from the previous session.