Bharti Hexacom IPO: Last Day Of Bidding; GMP Hints Bumper Listing; Check Subscription Status

The public offering of Bharti Hexacom, a subsidiary of Bharti Airtel, has seen a robust response from investors, with the final day of bidding witnessing heightened activity. On April 5, investors snapped up 5.58 crore shares, amounting to 1.35 times the total issue of 4.12 crore shares.

Non-institutional investors (NIIs) emerged as the frontrunners, displaying significant interest by subscribing 2.40 times the portion allotted to them. Following closely behind were retail investors, who secured 1.40 times their allocated quota. However, qualified institutional buyers (QIBs) are yet to fully subscribe to the offering.

The company has successfully raised approximately Rs 1,924 crore through its anchor book, with prominent global investors like Capital Group, Fidelity, Blackrock, and ADIA participating ahead of the IPO's opening.

Bharti Hexacom's IPO, which commenced on April 3, concludes today, April 5. The telecom arm of India's second-largest telecom operator aims to garner Rs 4,275 crore through this public offer.

Market observers have noted that the grey market premium (GMP) for Bharti Hexacom IPO stands at Rs 62 today, slightly higher than the previous day's Rs 59. They attribute this stability to the range-bound trading in the market, with anticipation surrounding the outcome of the Reserve Bank of India's Monetary Policy Committee (MPC) meeting expected later this week. The subdued response on the first day of subscription to the IPO also played a role in tempering grey market sentiments.

As per data from the Bombay Stock Exchange (BSE), by the end of the second day, the public issue was subscribed 1.12 times overall, with the retail portion witnessing a subscription rate of 1.15 times. The NII segment showed substantial interest, with a subscription rate of 1.71 times, while the QIB portion lagged behind at 0.82%.

Bharti Hexacom IPO managed to raise Rs 1,923.75 crore from anchor investors, highlighting the confidence institutional investors have in the company's prospects. Despite a YoY drop in Profit After Tax (PAT) by over 67% in FY23, the company's revenue saw a growth of nearly 22%.

At the end of FY23, the company's assets were valued at around Rs 18,250 crore, which surged to approximately Rs 19,600 crore in the first nine months of the financial year 2023-24. Meanwhile, the net worth of the company reached nearly Rs 39,780 crore by the end of the first nine months, compared to Rs 3,972 crore in FY23, indicating robust growth potential.