Bharti Hexacom Limited IPO Day 3 Today
Day 3 of the Bharti Hexacom IPO: On April 3, 2024, the company launched its first public offering (IPO), which will continue to accept subscriptions until April 5, 2024. This indicates that the public matter remains open till today. Investors in the primary market have responded favorably to the public offering valued at ₹4,275 crores, according to the Bharti Hexacom IPO subscription status.
These shares are available for purchase by investors for between Rs 542 and Rs 570 a share. They must bid for a minimum of 26 shares, and if more, in multiples of 26 shares.
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) will list Bharti Hexacom's shares. Shares will be allocated on April 8, 2024, and they will go on sale on April 12, 2024.
Bharti Hexacom Limited, a subsidiary of Bharti Airtel, is a significant player in the Indian telecommunications sector. The company's journey began in 1995 under the name 'Hexacom India Limited' and was later rebranded to Bharti Hexacom Limited after Bharti Airtel acquired a majority equity interest in 2004.
The company is part of the Bharti Enterprises group, founded by Sunil Bharti Mittal. Under his leadership, Bharti Enterprises has grown into one of India's leading business conglomerates, with interests in telecom, insurance, real estate, education, malls, hospitality, agri-business, and food. Sunil Bharti Mittal's vision and entrepreneurial spirit have been the driving force behind the group's success.
Originally incorporated in Delhi, the national capital territory of India, Bharti Hexacom has expanded its operations significantly. The company provides mobile services, fixed-line telephone, and broadband services, primarily in the Rajasthan and North East regions, covering states like Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
As per the NSE Data, at 12:40 IST, the public issue has been subscribed 0.68 times whereas its retail portion has been booked 0.61 times. The NII segment of the initial public offer has been subscribed 1.67 times while the QIB portion of the public offer was booked at 0.20 times.
Bharti Hexacom Limited, a prominent player in the Indian telecom sector, has demonstrated a robust financial performance in recent years. For the fiscal year ending March 31, 2022, the company reported a significant increase in revenue, amounting to Rs. 54,940 Million, compared to Rs. 47,043 Million in the previous fiscal year. This revenue growth can be attributed to the company's diversified service offerings, including mobile, voice, and data solutions, which have resonated well with the consumer base in Rajasthan and North East Circles, where it operates as one of the largest mobile service providers.
In terms of profit, Bharti Hexacom Limited has also shown remarkable performance. The net profit for the quarter ending December 2023 saw a 39.84% increase to Rs 212.70 crore from Rs 152.10 crore in the corresponding quarter of the previous year. Sales during this quarter rose by 7.21% to Rs 1800.60 crore, up from Rs 1679.50 crore in the previous quarter ended December 2022. These figures indicate a strong upward trajectory in the company's profitability, showcasing its ability to capitalize on market opportunities and maintain growth momentum.
Furthermore, the company's full-year revenue for FY23 stood at Rs 6,579 crore, marking a 22% increase on an annual basis. The net profit reported at the end of September 2023 was Rs 69.1 crore, compared with Rs 195.2 crore in the six months ended September 2022. This demonstrates the company's resilience and strategic agility in navigating the dynamic market conditions, including the challenges posed by the COVID-19 pandemic.
Bharti Hexacom Limited IPO Details
Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: April 3, 2024 to April 5, 2024).
Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Friday, April 12, 2024).
Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹5 per share).
Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹542 to ₹570 per share).
Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 26 Shares).
Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 75,000,000 shares (aggregating up to ₹4,275.00 Cr)).
Offer for Sale: The offer for sale, which is the amount and type of shares that the company is selling to the public. The offer for sale can be either primary or secondary, or a combination of both. A primary offer for sale means that the company is issuing new shares and raising fresh capital. A secondary offer for sale means that the existing shareholders are selling their shares and receiving the proceeds. A combination offer for sale means that both new and existing shares are being sold. (Offers for Sale: 75,000,000 shares (aggregating up to ₹4,275.00 Cr)).
Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Book Building IPO).
Listing At: The listing of shares in an IPO refers to the process where a company's shares are introduced to the public stock market, allowing investors to buy and sell the shares through a stock exchange. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: BSE, NSE).
Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: Not more than 10% of the Net Issue).
QIB Shares Offered: QIBs are institutional investors such as banks, mutual funds, insurance companies, pension funds, etc., who have expertise and financial resources to invest in the securities market. They are considered as informed and sophisticated investors who can assess the risks and returns of an IPO. QIBs can bid for up to 50% of the total shares offered in an IPO via the profitability route, or up to 75% of the total shares offered in an IPO via the QIB route. QIBs have to pay only 10% of the bid amount at the time of application, and the rest after the finalization of the basis of allotment. (QIB Shares Offered: Not More than 75% of the Net Issue).
NII (HNI) Shares Offered: NII stands for Non-Institutional Investors, which includes High Net-worth Individuals (HNIs) who bid for shares worth more than ₹200,000. The NII category is reserved for investors who do not fall under the retail or Qualified Institutional Buyers (QIBs) categories. Typically, a certain percentage of the IPO, usually around 15%, is allocated for NIIs to ensure a wider distribution of shares. HNIs within the NII category often have a higher chance of allotment compared to retail investors, making it an attractive option for those looking to invest larger sums in an IPO. (NII (HNI) Shares Offered: Not more than 15% of the Net Issue).
Conclusion
In conclusion, Bharti Hexacom Limited's IPO presents a significant event in the telecommunications sector, reflecting the company's growth trajectory and future potential. Investors have been provided with detailed insights into the company's financial health, market position, and strategic plans, allowing for an informed decision-making process. While the IPO market can be unpredictable, Bharti Hexacom's strong backing and established market presence suggest a positive outlook. As with any investment, potential risks should be weighed against the anticipated rewards, and investors are advised to consider their individual financial goals and risk appetite before participating in the IPO. Ultimately, Bharti Hexacom Limited's IPO could be a noteworthy addition to a diversified investment portfolio, offering a unique opportunity to be part of a leading telecom entity's journey.