April 12, 2023
New Delhi, India
Bharti Hexacom IPO: A Resounding Success
Stellar Debut Surpasses Expectations as Bharti Hexacom Shares Hit Premium High
Overview
Bharti Hexacom, a subsidiary of Bharti Airtel, has made waves in the stock market with its highly successful IPO, fetching a premium debut of 32.4% over the IPO price. The IPO, valued at ₹4,275 crore, stands as India’s most significant public issue in the past year, reflecting investor confidence in the telecommunications sector.
Key Highlights
Premium Debut: Bharti Hexacom shares debuted at ₹755, a remarkable 32.4% premium over the IPO price of ₹570, surpassing earlier estimates of a 12-15% premium. This stellar performance on its listing day has drawn attention to the company’s strong market potential and investor interest.
Robust Subscription: The IPO witnessed robust subscription figures, with the issue being oversubscribed nearly 30 times its allotted quota. Qualified institutional investors, non-institutional investors, and retail investors showed significant interest, subscribing 48.57 times, 10.52 times, and 2.83 times their respective allocations.
Anchor Investors’ Confidence: Bharti Hexacom’s anchor book featured prominent investors such as Capital Group, Fidelity, Blackrock, and ADIA, who participated ahead of the IPO opening, collectively raising around ₹1,924 crore. This demonstrated institutional confidence in the company’s growth prospects.
Company Overview
Established in 1995, Bharti Hexacom offers fixed-line telephone and broadband services in Rajasthan and the North East regions of India. With a customer base of 27.1 million across 486 census towns, the company operates through a vast distribution network comprising 616 distributors and 89,454 retail touchpoints. Despite facing a 67.2% year-on-year decline in net profit, amounting to ₹549.2 crore in fiscal year 2023, the company’s IPO success reflects investor optimism in its long-term prospects.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
