Bharti-Airtel officially stated that its arm Bharti-Hexacom has filed the draft Red Herring Prospectus with the Securities and Exchange Board of India for an Initial Public Offering (IPO).
The IPO consists of an offer for sale of up to 10 million shares by Telecommunications Consultants India.
According to the sources Telecommunications Consultants owns a 30% stake in Bharti Hexacom, and the remaining 70% stake in Bharti-Hexacom is clenched by Bharti Airtel. Telecommunications Consultant is a government-owned company.
Bharti Hexacom IPO Launch
Fresh shares will not be issued in the IPO and therefore Bharti Hexacom will not receive any revenue from the share sale. Bharti Airtel quoted in a release to the exchanges.
This IPO involves the selling of existing shares of up to 10 crore equity shares offered by its existing shareholders.
The company in the exchange filing said, On Friday, January 19, 2024, the company board of directors in a meeting approved the IPO of equity shares of face value Rs 5 each comprising of an offer-to-sale of up to 100,000,000 equity shares by Telecommunications Consultants India Ltd subject to such variation as permitted under applicable law.
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The lead managers for the upcoming Bharti-Hexacom Initial Public Offering are SBI Capital Markets Ltd, Axis Capital Ltd, BOB Capital Markets Ltd, ICICI Securities Ltd, and IIFL Securities Ltd.
Three months ago, the Economic Times cited from sources that the government may mop Rs 10,000 crore by selling part of its shares in the mobile telephony services company.
Bharti Hexacom integrated in 1995 is a service provider of fixed-line, broadband, and consumer mobile services to clients in Rajasthan and the North East Telecommunication circles in India which comprise the states Manipur, Meghalaya, Nagaland, Mizoram, Arunachal Pradesh and Tripura.
As of record until 30th September 2023, it had a gross of 29.1 million customers across both circles and is present in 486 census towns.
In the financial year 2021, the company made Rs 135 on average from each user and further company managed to increase this to Rs 195 by the six months ending in September 2023.
Conclusion
Bharti Hexacom reported earnings of Rs 3,420 crore, compared to Rs 3,167 core a year ago for the six months ended September. However, the profit dipped to Rs 69 crore from Rs 195 crore a year ago.