Bharti Hexacom's IPO Attracts Attention in the Telecom Sector

Before Market Opens
3 April, 2024

The Bharti Hexacom IPO, which is one of the first major public offerings in the fiscal year 2024-25, opened for subscription on April 3, 2024, and closed on April 5, 2024. Bharti Hexacom is a subsidiary of Bharti Airtel Limited and provides telecommunications services in several Indian states, including Rajasthan and the northeastern regions. The company had set the price band for its shares between ₹542 and ₹570.

The IPO comprised an offer for sale (OFS) of 75,000,000 equity shares, raising funds to achieve the benefits of listing the equity shares on stock exchanges. Before the IPO opened, Bharti Hexacom successfully raised Rs 1,923.75 crore from anchor investors. The shares were offered across different investor categories, including Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs), with specific allocations for each category.

The financial details for Bharti Hexacom indicated an increase in revenue and a notable shift in profit after tax over recent financial periods. By the end of 2023, Bharti Hexacom had invested significantly in digital infrastructure to enhance its service offerings, particularly noting an expansive customer base across various towns.

Bharti Hexacom operates in the competitive Indian telecommunications market, primarily offering fixed-line telephone and broadband services. Its competitors are other major telecom service providers in India, focusing on similar services and market segments. Based on the context provided by the IPO details, here are key competitors for Bharti Hexacom:

  1. Bharti Airtel Limited: Although Bharti Hexacom is a subsidiary of Bharti Airtel, Bharti Airtel itself operates extensively across various telecom services, including mobile, fixed line, broadband, and digital TV services across India and international markets.
  2. Vodafone Idea Limited: A key player in the Indian telecom sector, Vodafone Idea provides a wide range of services including voice, data, and other value-added services catering to both retail and enterprise customers.
  3. Reliance Jio Infocomm Limited: As a part of Reliance Industries, Jio has significantly disrupted the Indian telecom market by offering affordable 4G services nationwide. They provide a broad spectrum of telecommunications services, including voice, data, and digital content.

These companies, along with Bharti Hexacom, contribute to a dynamic and highly competitive telecommunications industry in India, characterized by rapid technological advancements and evolving customer demands

For potential investors, analysts had suggested paying attention to the company’s strong parentage under Bharti Airtel and its substantial service network across key geographic regions. The IPO was also seen trading at a premium in the unofficial market before its listing, indicating positive investor sentiment

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