In what is expected to be the first IPO in the financial year 2024-25, Bharti Airtel subsidiary Bharti Hexacom has announced that it has set a price band of Rs 542 to Rs 570 per share for its Rs 4,275-crore initial public offering (IPO).
The shares will be listed on the BSE and NSE. The book-running lead managers to the issue are SBI Capital Markets Ltd, Axis Capital, BOB Capital Markets, ICICI Securities and IIFL Securities.
About Bharti Hexacom
Bharti Hexacom is a communications solutions provider, offering consumer mobile services, fixed-line telephone and broadband services to customers in Rajasthan and the North East. Bharti Airtel holds a 70 per cent stake and state-run Telecommunications Consultants India Ltd holds the remaining 30 per cent shares.
The company, which filed draft papers with the Securities and Exchange Board of India (Sebi) in January, obtained its observation letter, a go-ahead to float the public issue, on March 11.
When will the issue hit capital markets?
The bidding for anchor investors will open on April 2. Bharti Hexacom's initial share sale will open for public subscription on April 3 and the three-day IPO will conclude on April 5.
The price band is yet to be announced. Investors can trade from April 12.
The company has reserved 75 per cent of the issue size for Qualified Institutional Buyers while 15 per cent is allotted for Non-Institutional Investors and 10 per for Retail Individual Investors.
The maiden public issue is purely an offer-for-sale of up to 7.5 crore equity shares by existing shareholder Telecommunications Consultants India and this represents a 15 per cent stake. Though the public shareholder planned to offload 10 crore shares, the offer-for-sale size was later brought down to 7.5 crore.
What will the proceeds be used for?
Since the IPO is an offer-for-sale and there is no fresh issue, Bharti Hexacom will not receive any funds from the issue. The proceeds will go to the selling shareholders.
