CHENNAI: Telecom major Bharti Airtel Limited's subsidiary Bharti Hexacom Limited's initial public offering (IPO) opens on Wednesday. The bidding opened for anchor investors on Tuesday, while the IPO opens on Wednesday and closes on Friday (April 5).
The price band is fixed between Rs 542 and Rs 570 per equity share with a face value of Rs 5 each. There is an offer for sale component of up to 7.5 crore equity aggregating up to Rs 4,275 crores. Bids can be made for a minimum of 26 equity shares and in multiples of that.
The grey market premium for Bharti Hexacom Limited stood at Rs 40 on Tuesday.
The offer doesn't have a fresh issue component and the company will not receive any proceeds from the offer. Telecommunications Consultants India Limited will sell its 7.5 crore shares in the company.
At least 75% of the offer is marked for qualified institutional buyers and non-institutional portion will be up to 15% of the offer and up to 10% for retail investors.
Bharati Hexacom focuses on communications business including consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles, which comprises Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. It holds 35% and 40% market share in Rajasthan and the North East respectively.
The company is expected to capitalise on the demand for connectivity, 5G adoption. Though the company has a strong presence it does face intense competition from Reliance Jio and high debt position, according to Value Research.
The company's net worth stood at Rs 3972 crores in the 2023 financial year and profit for FY23 stood at Rs 549 crores and basic earnings per share stood at 10.98. The company suffered Rs 1033 crore loss in 2021 fiscal due to low average user per revenue (ARPU). Bharati Hexcom's average ARPU stood at 185 in FY 2023.
SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities and IIFL Securities are book running lead managers.