Bharti Hexacom IPO: Steady Bidding On Day 2; GMP Hints Premium Listing; Check Subscription Status

Investors showed an interest in the public issue of Bharti Hexacom as the bidding for the IPO entered its second day on April 4. With 1.62 crore shares or 0.40 times the issue of 4.12 crore shares already picked up, the telecom subsidiary of Bharti Airtel is gearing up for a successful public offering.

Retail investors took the lead on day two, securing 0.61 times the portion reserved for them. Following closely behind, non-institutional investors bought 0.46 times the allotted quota. However, qualified institutional buyers (QIBs) seemed cautious, with only a 29% subscription rate recorded so far.

The IPO, which opened for subscription on April 3, is set to close on April 5. Bharti Hexacom aims to raise Rs 4,275 crore through its public offer. Prior to the IPO launch, the company raised approximately Rs 1,924 crore through its anchor book, attracting investments from renowned global players such as Capital Group, Fidelity, Blackrock, and ADIA.

Notably, the IPO comprises solely an offer-for-sale (OFS) with no fresh issue component. Telecommunications Consultants India, the only public shareholder in the company, intends to offload 7.5 crore equity shares, representing a 15% stake in the OFS. Bharti Airtel, the promoter of the company, holds a 70% stake, while the remaining 30% shares (15 crore) are owned by Telecommunications Consultants India.

In terms of allocation, the IPO reserves at least 75% for qualified institutional buyers (QIBs), a maximum of 15% for non-institutional investors (NIIs), and an additional 10% for retail investors.

Bharti Hexacom operates predominantly in Rajasthan and the North Eastern telecommunications circles, offering a diverse range of communication solutions under the renowned "Airtel" brand. These include fixed-line telephony, internet, and mobile services, catering to a broad spectrum of consumers.

According to the Red Herring Prospectus (RHP), Bharti Hexacom's listed peers include Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio Infocomm Ltd. The RHP also reveals a Price/Earnings (P/E) ratio for Bharti Airtel Ltd. at 82.16, providing investors with insights into the industry dynamics.

The management of the Bharti Hexacom IPO is overseen by book running lead managers including SBI Capital Markets Limited, Axis Capital Limited, Bob Capital Markets Limited, ICICI Securities Limited, and IIFL Securities Ltd., with Kfin Technologies Limited serving as the registrar.

As the IPO continues to progress, market analysts anticipate a surge in investor participation, driven by the promising prospects of Bharti Hexacom within the telecommunications sector. With its strong brand presence and strategic offerings, the company is poised to leverage the growing demand for communication services.