Bharti Hexacom Shares listed with a 32.5% Premium on NSE

Bharti Hexacom, a leading provider of communication solutions in North-East India, made a strong debut on the National Stock Exchange (NSE) with its share price opening at ₹755, significantly higher than the issue price of ₹570.

Details of Market Performance:

Opening Price:

Bharti Hexacom’s share price opened at ₹755 per share on the NSE, marking a 32.5% increase from the issued price of ₹570. This opening price surpassed market expectations which had predicted an opening range of ₹650-660 per share.

Subscription Rates:

The initial public offering (IPO) of Bharti Hexacom received an overwhelming response from investors:

Overall, the subscription status on the third day was 29.88 times, as per the Bombay Stock Exchange (BSE) data.

Allocation in the IPO:

The IPO was structured with specific allocations:

• 75% reserved for QIBs.
• 15% allocated to NIIs.
• 10% for retail investors.

IPO Composition:

It is important to note that the Bharti Hexacom IPO did not include any fresh issues. Instead, it was purely an offer-for-sale (OFS) of 7.5 crore equity shares by Telecommunications Consultants India. This structured approach underscores the strategic intentions of existing stakeholders.

Management of the IPO:

The IPO process was managed by notable financial entities, including Axis Capital Limited and ICICI Securities Limited, serving as the book running lead managers.

Market Anticipation and Grey Market Performance:

Prior to listing, the grey market premium (GMP) for Bharti Hexacom was at +125, indicating a high investor confidence with shares trading at a premium of ₹125 over the IPO price. Market analysts had forecasted a listing price of ₹695 per share, representing a 21.93% premium, which the actual opening price exceeded.