Bharti Hexacom IPO booked 29.88x on the last day of bidding process
The retail component was subscribed 2.83 times, the quota for QIBs was subscribed 48.57 times, and the category for non-institutional investors was subscribed 10.52 times, on the last day.
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The Bharti Hexacom IPO picked up steam on the second day despite having a timid debut. On day two of the issue received some enthusiastic response from retail investors (1.15 times) and non-institutional investors (1.71 times). The QIBs portion fetched 82%.
On the first day of subscription, the issue was booked 34%. On the first day of subscription, the issue was booked 34%. The retail section was subscribed at 48%, while the NII part was booked at 36%. A chunk of 29% was subscribed by QIBs.
Not less than 75% of the offer has been reserved for QIB, maximum 15% of the offer has been set aside for NII, and maximum 10% of the offer has been put aside for retail investors.
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Bharti Hexacom is a communications solutions provider that serves customers in Rajasthan and the North-East telecommunication circles in India, which include the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. It also provides fixed-line telephone and broadband services. The corporation uses the name “Airtel” to market its services.
Bharti Hexacom served 27.1 million users in total throughout both circles and was present in 486 census towns. The client market share of the corporation has increased steadily in the North-East (from 43.6% to 49.8%) and Rajasthan (from 33.1% as of March 31, 2021, to 35.0% as of December 31, 2023). As of December 31, 2023, the firm has the largest market share of Visitor Location Register (VLR) clients in the North-East circle with 6.4 million users and a 52.3% market share, and the second-highest in the Rajasthan circle with 23.2 million customers and a 38.7% market share.
About 70% of the company is owned by Bharti Airtel Ltd, with the remaining 30% being owned by the Government of India through Telecommunications Consultants India Ltd (TCIL).
Bharti Hexacom IPO Subscription Status
Bharti Hexacom IPO has received bids for 1,23,24,80,470 shares against 4,12,50,000 shares on offer, according to data from the BSE.
The retail investors’ segment received bids for 2,12,46,758 shares against 75,00,000 shares on offer for this segment.
The NIIs portion got bids for 11,83,08,372 shares against 1,12,50,000 on offer for this segment.
The QIBs segment got bids for 1,09,29,25,340 shares against 2,25,00,000 on offer for this segment.
Bharti Hexacom IPO details
The Red Herring Prospectus of the firm states that the Bharti Hexacom IPO consists only of an offer-for-sale (OFS) and does not include a fresh issue component. Telecommunications Consultants India, the company’s sole selling shareholder intends to sell off 7.5 crore equity shares, or 15% of the OFS.
TCIL had originally intended to offer up to 10 crore equity shares, according to the DRHP that was submitted to SEBI. The IPO only consists of OFS portion. As a result, the company is unlikely to receive any proceeds from the issue.
The book running lead managers for the Bharti Hexacom IPO include Axis Capital Limited, Bob Capital Markets Limited, ICICI Securities Limited, SBI Capital Markets Limited, and IIFL Securities Ltd. The issue registrar is Kfin Technologies Limited.
Bharti Hexacom IPO GMP today
Bharti Hexacom IPO GMP or grey market premium is +70. This indicates Bharti Hexacom share price were trading at a premium of ₹70 in the grey market, according to investorgain.com.
Bharti Hexacom’s shares were expected to list at a price of ₹640 per share, 12.28% more than the IPO price of ₹570, after accounting for the upper end of the IPO pricing range and the current premium on the grey market.
The last 14 sessions of grey market activity suggest that the IPO GMP is rising and that a strong listing is expected. The greatest GMP is ₹70, while the lowest GMP is ₹30, according to experts at investorgain.com.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 05 Apr 2024, 05:17 PM IST
