Bharti Hexacom IPO likely to value the company at over ₹28,000 crore, say sources
Bharti Hexacom IPO is a full offer for sale by government-owned TCIL. The parent company Bharti Airtel, which owns a 70% stake in Bharti Hexacom will not sell any shares via the IPO nor will there be any fresh issuance of shares.
Telecom service provider Bharti Airtel Ltd has received market regulator Securities and Exchange Board of India’s (SEBI) approval for the IPO of its subsidiary Bharti Hexacom, sources with direct knowledge told CNBC-TV18 on March 20. They added that the expected valuation of the company is likely to be over ₹28,000 crore.
The issue size is likely to be around ₹4,300 crore which Telecommunications Consultants India Ltd. (TCIL) will raise via offloading a part of its stake through the IPO, sources said. They also indicate that the IPO is likely to be launched in the first week of April.
It will be the first IPO from the Bharti Group after over a decade. The last IPO to have come out from the Bharti Group was Bharti Infratel, now known as Indus Towers, which listed back in 2012. Bharti Airtel spokesperson did not comment on CNBC-TV18’s query regarding details of the IPO.
Bharti Hexacom IPO is a full offer for sale by government-owned TCIL. The parent company Bharti Airtel, which owns a 70% stake in Bharti Hexacom will not sell any shares via the IPO nor will there be any fresh issuance of shares.
The IPO is aimed at giving the government-owned TCIL that currently holds the remaining 30% stake in Bharti Hexacom a partial exit.
An industry expert pointed out, “Valuation is key as it directly impacts the SOTP value of Bharti Hexacom for the shareholders of Bharti Airtel. Even if there is no share sale by Airtel, the value unlocking is the upside to watch out for through the IPO.”
Bharti Airtel's subsidiary runs its telecom operations in the North East and Rajasthan circles. It has a market share of 40% in Rajasthan and 50% in the North East. In FY23, Bharti Hexacom recorded revenue at ₹6,719 crore and profit after tax (PAT) at ₹549 crore, according to its financials.
First Published: Mar 20, 2024 1:42 PM IST
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