The Bharti Hexacom IPO witnessed strong demand on the second day of bidding, with subscription levels reaching 1.12 times, as per BSE data. Retail investors and non-institutional investors (NIIs) showed great enthusiasm, subscribing 1.15 times and 1.71 times, respectively. The qualified institutional buyers (QIBs) portion received a subscription of 82%.
During the initial day of subscription, the IPO had garnered a subscription of 34%, with NII portion subscribed at 36% and the retail portion at 48%. The QIBs portion had a subscription of 29%.
The subscription period for the Bharti Hexacom IPO will conclude today, Friday, April 5. The price band for the IPO has been set at ₹542 to ₹570 per share with a face value of ₹5. The subsidiary of Bharti Airtel raised ₹1,924 crore from anchor investors on Tuesday. Each lot of the Bharti Hexacom IPO comprises 26 equity shares.
The IPO allocates 75% of the offer for QIBs, 15% for NIIs, and 10% for retail investors.
Bharti Hexacom, operating in Rajasthan and the Northeast, provides internet, fixed-line phone, and mobile services under the “Airtel” brand. It has a substantial network presence with 5,092 owned and 19,782 leased network towers across 486 towns.
While Bharti Airtel holds a 70% stake in the company, the remaining 30% is controlled by the Government of India. Despite being a subsidiary, Bharti Hexacom has a distinct market presence, with a business model similar to its parent company but trading at a discount of approximately 12-15%.
The IPO, consisting solely of an offer-for-sale (OFS), does not include a fresh issue component. Telecommunications Consultants India, the selling shareholder, plans to sell 7.5 crore equity shares, or 15% of the OFS.
Leading brokerage firms have offered positive recommendations for the IPO, citing Bharti Hexacom’s strong market presence and growth prospects. Nirmal Bang Securities Pvt Ltd recommends subscribing to the IPO with a long-term view, considering the company’s performance and potential in the telecom sector.
IndSec also suggests subscribing to the IPO for the long term, highlighting Bharti Hexacom’s value proposition compared to its peers and the growth opportunities in the telecom industry.
As per grey market activity, the IPO GMP is currently at +57, indicating a premium of ₹57 per share. Analysts predict a robust listing for Bharti Hexacom shares, with expectations of trading at around ₹627 per share, 10% higher than the IPO price.
Grey market premium reflects investor sentiment and readiness to pay above the issue price.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
