About Bharti Hexacom Limited
Bharti Hexacom Limited is launching its IPO. The IPO opens for subscription on 3rd April and will close on 5th April 2024.
What does Bharti Hexacom Limited do?
Incorporated in 1995, Bharti Hexacom Limited is a communications solutions provider offering consumer mobile services, fixed-line telephone, and broadband services to customers in the Rajasthan and the Northeast telecommunication circles in India. The company is 70% owned by Bharti Airtel and 30% by the Government of India through Telecommunications Consultants India Limited (TCIL).
As of December 31, 2023, the company had its presence in 486 census towns and had an aggregate of 27.1 million customers across both circles. Its customer market share has grown consistently in Rajasthan from 33.1% as of March 31, 2021, to 35.0% as of December 31, 2023, and in the North East from 43.6% to 49.8% between the same dates. As of December 31, 2023, the Company’s distribution network comprised 616 distributors and 89,454 retail touchpoints.
As of December 31, 2023, the company had invested ₹ 206 billion in capital expenditure in its future-ready digital infrastructure. The company also derives significant synergies from its relationship with its Promoter, Airtel, through the expansive digital infrastructure, digital experience, and the digital services it provides to its customers.
What is the issue size of the Bharti Hexacom Limited IPO?
The entire issue size of the IPO comprises an offer for sale of 75,000,000 shares aggregating up to ₹ 4275 Crores by existing shareholders.
Financials of Bharti Hexacom Limited IPO (₹ crores)
| Financial Year | Total Assets | Total Revenue | Profit After Tax | EBITDA | EPS |
| March 31, 2021 | 15,003.50 | 4,704.30 | (1,033.90) | 1,137.30 | (20.68) |
| March 31, 2022 | 16,674.30 | 5,494.00 | 1,674.60 | 1,898.50 | 33.49 |
| March 31, 2023 | 18,252.90 | 6,719.20 | 549.20 | 2,888.40 | 10.98 |
Schedule/Timeline of Bharti Hexacom Limited IPO
| Issue Period | 3rd April to 5th April 2024 |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | April 08, 2024 |
| Initiation of Refunds | April 10, 2024 |
| Credit of Shares | April 10, 2024 |
| Date of Listing | April 12, 2024 |
| Mandate end date | April 20, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | May 08, 2024 |
| Anchor Investors Lock-In End Date (Remaining investment) | July 08, 2024 |
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
Risk factors to consider:
Capital-intensive business: The company required 30-50% of its revenues as capital in the last 3 years to fund its capital expenditure and if it is unable to raise additional capital, the business, financial condition, and results of operations could be adversely affected.
Legal proceedings and Contingent liabilities: The company is involved in legal proceedings and has contingent liabilities that have not been provided for in their Restated Financial Information and could adversely affect the business, financial condition, and results of operations.
How to apply to the Bharti Hexacom Limited IPO?
You can apply for the Bharti Hexacom Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for the Bharti Hexacom Limited IPO?
You can check the allotment status for the Bharti Hexacom Limited IPO on the website of the Registrar and Transfer agent.