Bharti Hexacom, a subsidiary of telecom operator Bharti Airtel, is set to go public on April 3. It will be the first initial public offering in the new financial year 2024-25.
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The price band will be announced next week. The public issue will close on April 5, while the anchor book will open for a day on April 2.
The Bharti Hexacom IPO comprises only an offer-for-sale (OFS) with no fresh issue component. Telecommunications Consultants India, the only public shareholder in the company, will offload 7.5 crore equity shares or 15 percent stake in the OFS.
Promoter Bharti Airtel owns 70 percent stake and the remaining 30 percent shares (15 crore) are held by Telecommunications Consultants India.
The communications solutions provider has reserved 75 percent of the issue size for qualified institutional buyers, 15 percent for non-institutional investors (i.e. high networth individuals), and the remaining 10 percent for retail investors.
Bharti Hexacom that offers consumer mobile services, fixed-line telephone and broadband services under the brand Airtel to customers in the Rajasthan and the North East telecommunication circles in India has recorded a 67.2 percent on-year decline in net profit at Rs 549.2 crore for the fiscal year FY23 despite healthy topline and operating numbers, impacted by higher base due to exceptional gains of Rs 1,951.1 crore in previous year.
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Revenue from operations during the year grew by 21.7 percent to Rs 6,579 crore compared to previous year. Its EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 53.6 percent to Rs 2,785.7 crore with margin expansion of 878 bps at 42.34 percent during the same period.
Net profit in the nine months ended December FY24 dropped 18.9 percent to Rs 281.8 crore because of exceptional loss and higher tax costs, but supported by higher other income and operating numbers. Revenue from operations increased by 7.7 percent to Rs 5,220.8 crore in 9MFY24.
Its EBITDA jumped by 23.2 percent year-on-year to Rs 2,483.4 crore and margin grew by 597 bps to 47.57 percent in April-December period of FY24.
Bharti Hexacom will finalise the basis of allotment of IPO shares by April 8, while the 7.5 crore equity shares will be credited to demat accounts of successful investors by April 10.
Investors can trade in Bharti Hexacom IPO shares with effect from April 12.
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The Bharti Airtel subsidiary received approval from the SEBI to go ahead with IPO plans on March 11. SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are the book running lead managers to the issue, while KFin Technologies is the registrar.
