Mumbai, March 20 — Bharti Hexacom, a subsidiary of telecom giant Bharti Airtel, has been granted the green light by the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO) intentions, media reported.
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The IPO entails solely a sale of 10 crore equity shares by the sole public shareholder, Telecommunications Consultants India, with no new shares being issued, reported Moneycontrol.
As a result, all proceeds from the offering (excluding IPO expenses) will be received by the selling shareholder.
According to the draft red herring prospectus (DRHP) filed by the communications solutions provider with the market regulator on January 19, promoter Bharti Airtel holds a 70 percent stake (35 crore equity shares) and the remaining 30 percent shareholding (equivalent to 15 crore equity shares) is held by non-promoter Telecommunications Consultants India, the report said.
The Securities and Exchange Board of India (SEBI) issued an observation letter regarding the companys IPO draft papers on March 11.
In SEBI terminology, the issuance of an observation letter indicates that the company is eligible to launch its IPO within the upcoming one-year timeframe.
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Bharti Hexacom provides consumer mobile, fixed-line telephone, and broadband services under the Airtel brand in Rajasthan and the North East.
