Airtel subsidiary The initial public offering (IPO) of company Bharti Hexacom will open on April 3. According to the company’s IPO documents (RHP), the three-day initial share sale will close on April 5. Anchor investors will be able to place bids for shares on April 2. This will be the first IPO of the new financial year 2024-25. The IPO will be entirely in the form of an offer for sale (OFS) of 7.5 crore shares. This is equivalent to 15 per cent stake of existing shareholder Telecommunications Consultants India Ltd. However, the size of the OFS has been reduced from the earlier 10 crore shares. Since the IPO is entirely based on an OFS, the proceeds from the issue will go to the shareholders.
70 percent stake of Bharti Airtel
The company will not get any amount from this. Bharti Hexacom has received the ‘conclusion letter’ for the IPO from the Securities and Exchange Board of India (SEBI) on March 11. SEBI’s conclusion letter is necessary for any company to launch an IPO. Promoter Bharti Airtel holds 70 percent stake in Bharti Hexacom and the remaining 30 percent is held by public sector Telecom Consultants India Limited. Bharti Hexacom is a communications solutions provider, providing consumer mobile services, fixed line telephone and broadband services to customers in Rajasthan and North-East telecom circles in the country.
Provides service only under Airtel brand
Bharti Hexacom offers its services under the brand “Airtel”. The company has a unique strategy to attract and retain customers and make its portfolio premium by giving them experiences through our use of data science and omnichannel approach. According to DRHP, the company’s listed peers include Vodafone Idea Ltd and Bharti Airtel (which has a P/E of 75.18). For the six months ended September, Bharti Hexacom reported revenue of ₹3,420 crore, up from ₹3,167 crore reported for the same period last year.
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