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Bharti Hexacom Limited IPO Booked 34% on Day 1- Today is Day 2 Check Subscription Status and Other Details



Bharti Hexacom Limited IPO Day 2 Today


On April 3, 2024, Bharti Hexacom Limited launched its initial public offering (IPO), which would continue to accept subscriptions through April 5, 2024. This indicates that the public issue will be available till this Friday. Investors in the primary market have shown a lackluster attitude towards the ₹4,275 crore public issue, according to the Bharti Hexacom IPO subscription status.


According to NSE data, as of 12:31 PM on the second day of bidding, the public issue had been subscribed 0.23 times, while its retail part had been booked 0.27 times. While the QIB section of the public offer was booked 0.18 times, the NII segment of the first public offer was subscribed 0.29 times.


The inception of Bharti Hexacom was driven by the need to provide quality telecommunication services in regions that were underserved at the time. The company aimed to bridge the digital divide and enhance connectivity in these areas, fostering growth and development. This mission aligned with the broader vision of Bharti Enterprises to create a transformative impact on society through innovation in telecommunications.


The rationale behind starting Bharti Hexacom was to tap into the potential of the burgeoning telecom market in India, especially in regions that lacked adequate services. By offering reliable and affordable communication solutions, Bharti Hexacom aimed to empower individuals and businesses in these areas, contributing to the overall economic progress of the country.


Today, Bharti Hexacom continues to thrive as a testament to the foresight of its founders and the enduring commitment to connecting people across India. With a robust infrastructure and a customer-centric approach, the company is well-positioned to navigate the dynamic landscape of the telecommunications industry. As it moves forward, Bharti Hexacom remains dedicated to innovation, quality, and inclusivity, ensuring it remains at the forefront of India's digital revolution.


Anchor investors contribute ₹1,923.75 crore to the Bharti Hexacom IPO. In FY23, the telecom service provider's revenue increased by around 22% year over year. Nonetheless, in FY23, the company's PAT (Profit After Tax) decreased by more than 67% YoY. The company's assets increased to ₹19,600 crore in the first nine months of the financial year 2023–24 from around ₹18,250 crore at the conclusion of the previous fiscal year. The company's net value at the conclusion of the first nine months was almost ₹39,780 crore, and by the end of FY23, it was almost ₹3,972 crore.


Bharti Hexacom IPO GMP Today


In spite of the relatively low total subscription, Bharti Hexacom's Grey Market Premium (GMP) is Rs 60. This suggests a possible listing price that is higher than the Rs 570 upper price band of the IPO. The anticipated listing price at this GMP may be approximately Rs 630, which would represent a premium of more than 9%.


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, the Bharti Hexacom Limited IPO presents a significant event in the telecommunications sector, reflecting the company's growth trajectory and future potential. With a substantial issue size and a strategic price band, the IPO has garnered attention from various investor segments, including QIBs, NIIs, and retail investors. The company's decision to reduce the issue size and the subsequent grey market premium indicate a nuanced market perception. As the IPO date approaches, potential investors are advised to consider the company's financial performance, market position, and the broader economic context. Bharti Hexacom's journey from a regional player to a participant in the national market is a testament to its operational strengths and strategic initiatives. The IPO not only offers an opportunity for the company to raise capital but also allows investors to be part of Bharti Hexacom's evolving story in the Indian telecom landscape.


Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.





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