Airtel arm Bharti Hexacom IPO possible in April, gets Sebi nod: Top things you need to know about the issue

Bharti Hexacom, which is owned by telecom major Bharti Airtel, could likely bring its IPO in April first week, seeking valuation of over ₹28,000 crore, CNBC-TV18 reported. The IPO size could be around ₹4,300 crore, the report added after Bharti Hexacom received approval from the Securities and Exchange Board of India (SEBI) to go ahead with its IPO plans.

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Sebi nod to Bharti Hexacom

Bharti Hexacom is owned 70% by telecom service provider Bharti Airtel Ltd.. The company received capital markets regulator Sebi's nod to raise funds through an initial public offering (IPO). If it is open, this will the first IPO from Bharti Group after over a decade. Last IPO from the Bharti Group was Bharti Infratel, now known as Indus Towers, which was listed in 2012.

Bharti Hexacom IPO: What we know

The IPO is entirely an offer for sale (OFS) of up to 10 crore shares by the only public shareholder Telecommunications Consultants India and Bharti Hexacom will not receive any proceeds, it was reported. Bharti Hexacom filed draft papers with the Sebi in January 2024. SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are the book-running lead managers to the IPO. Kfin Technologies Limited is the registrar of the issue.

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What draft papers show on Bharti Hexacom?

Parent company Bharti Airtel holds a 70% stake or 35 crore equity shares. The remaining 30% shareholding- 15 crore equity shares- is being held by Telecommunications Consultants India.

Bharti Hexacom: What you need to know about the company

Bharti Hexacom runs mobile services in Rajasthan and the Northeast telecommunication circles of India- Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. As per its annual report, it is also aiming to cover all the urban areas and a few pockets of rural areas with 5G services by March this year.

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Bharti Hexacom financials

For FY23, Bharti Hexacom recorded a net profit of ₹549 crore and its revenue from operations remained strong rising 22% to ₹6,719 crore. For the six months ended September, company posted a revenue of ₹3,420 crore, compared to ₹3,167 crore in the same period a year ago.