Bharti Hexacom's IPO subscribed 29 times on final day

Bharti Hexacom, a subsidiary of Bharti Airtel, witnessed an overwhelming response to its initial public offering (IPO) on the final day of the bidding process. The IPO was oversubscribed by a factor of 29, reflecting the immense investor confidence in the company's growth prospects. This article delves into the key details of Bharti Hexacom's IPO success, highlighting the subscription rates, company profile, and investor sentiment.

Key Highlights:

Subscription Details

• Retail Investors: Retail Investors are individual investors who bid for shares in the IPO.
• Qualified Institutional Buyers (QIBs): QIBs category includes mutual funds, insurance companies, pension funds, and foreign institutional investors (FIIs).
• Non-Institutional Investors (NIIs): NIIs are high-net-worth individuals and corporate bodies who bid for shares in large quantities.

Key Highlights of Bharti Hexacom's IPO

• Bharti Hexacom's IPO was oversubscribed by 29.88 times on the final bidding day.
• Qualified Institutional Buyers (QIBs) led the subscription, followed by non-institutional investors (NIIs) and retail investors.
• Bharti Hexacom operates under the Airtel brand across Rajasthan and the North-East circles of India.
• It serves 27.1 million users in 486 census towns.
• Bharti Hexacom's market share has increased in the North-East from 43.6% to 49.8% and in Rajasthan from 33.1% to 35.0%.
• Bharti Hexacom has the largest market share of Visitor Location Register (VLR) customers in the North-East circle and the second-highest in the Rajasthan circle.
• Approximately 70% of Bharti Hexacom is owned by Bharti Airtel Ltd, and 30% by the Government of India through Telecommunications Consultants India Ltd (TCIL).
• The IPO consisted only of an Offer for Sale (OFS) of 7.5 crore equity shares by TCIL.
• Bharti Hexacom's IPO did not include a fresh issue component, meaning the company would not receive any proceeds from the IPO.
• Book running lead managers for the IPO included Axis Capital Limited, Bob Capital Markets Limited, ICICI Securities Limited, SBI Capital Markets Limited, and IIFL Securities Ltd.
• Grey market premium for Bharti Hexacom's shares was ₹70, suggesting shares were trading at a premium in the grey market.
• The Bharti Hexacom IPO GMP indicated that shares were expected to list at a premium of 12.28% over the IPO price.