Bharti Hexacom Ends At 43% Premium Over IPO Price
The Rs 4,275-crore IPO was subscribed 29.88 times during its three-day issue, led by institutional investors.
Shares of Bharti Hexacom Ltd. ended at Rs 814 apiece on the National Stock Exchange on Friday, a premium of 42.8% over the issue price of Rs 755 apiece. On the BSE, it ended at Rs 813.75 per share, a premium of 42.76%. The shares were listed on the National Stock Exchange at Rs 755 apiece, and at Rs 755.20 apiece on the BSE.
The Rs 4,275 crore initial public offering was subscribed 29.88 times during its three-day initial public offering, led by institutional investors (48.57 times), non-institutional investors (10.52 times), and retail investors (2.83 times).
The company raised Rs 1,923.75 crore from anchor investors a day ahead of its IPO. It allotted 3.37 crore shares at Rs 570 apiece to 97 anchor investors.
The maiden issue of Bharti Airtel Ltd.'s subsidiary is a pure offer for sale by the government-owned Telecommunications Consultants India Ltd. It will offload up to 7.5 crore shares and the price band is set at Rs 542–570 per share.
The proceeds of the stake sale will go to the Union government. Airtel will hold on to its 70% stake in the company, even as TCI's shareholding will reduce to 10%. Currently, the government holds 30% stake in the company.
Business
Founded in 1995, Hexacom operates only in Rajasthan and the northeast circles. It also provides fixed-line and broadband services in Rajasthan. In the first nine months of fiscal 2024, revenue-wise market share for the Rajasthan circle is nearly 40% and 52% for the northeast circle.
The company has consistently increased its average revenue per user for mobile services from Rs 135 in fiscal 2021 to Rs 155 in fiscal 2022 to Rs 185 in fiscal 2023. It is Rs 197 In the first nine months of fiscal 2024.
The company's total customer base stands at 2.71 crore across both the circles as of Dec. 31.
