Bharati Hexacom Limited is coming up with an IPO worth INR 4,275 crores, consisting of an offer to sell 7.50 crore shares. The company aims to build a brand reputation and achieve the benefits of listing.
Bharti Hexacom IPO – Important Dates
| Bharti Hexacom IPO Date | April 3, 2024 to April 5, 2024 |
| Bharti Hexacom IPO Listing Date | April 12, 2024 |
| Bharti Hexacom IPO Price | INR 542 to 570 per share |
| Bharti Hexacom IPO Lot Size | 26 Shares |
| Bharti Hexacom IPO Total Issue Size | INR 4,275 crores |
| Bharti Hexacom IPO Basis of Allotment | April 8, 2024 |
| Bharti Hexacom IPO Initiation of Refunds | April 10, 2024 |
| Bharti Hexacom IPO Credit of Shares to Demat | April 10, 2024 |
| Bharti Hexacom IPO Issue Type | Book Built Issue IPO |
| Bharti Hexacom IPO Listing At | BSE, NSE |
Bharti Hexacom Ltd IPO – Company Profile
Bharti Hexacom is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, which comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. The company offers services under the brand ‘Airtel’.
The company continuously invests in network expansion, technology advancement, and judicious spectrum investments. As of December 31, 2023, it had invested INR 206 billion in capital expenditure in future-ready digital infrastructure.
As of 31st December 2023, the revenue market share was 40.40% from Rajasthan and 52.7% from the North East circle. The company ranks number one communication solution provider in the North East circle and ranks number two in the state of Rajasthan.
The company has been able to consistently increase the Average Revenue Per User (ARPU) for mobile services from INR 135 for Fiscal 2021 to ₹197 for the nine months ended December 31, 2023.
Bharti Hexacom Limited IPO Review
Bharti Hexacom’s financial analysis reveals a mixed performance. While there are positive signs such as growth in equity and assets, concerns arise from declining profitability, liquidity challenges, and fluctuating financial ratios. Potential investors should conduct thorough due diligence before considering investment in the IPO.
- Revenue Trend: The revenue increased from ₹54,052 million in March 2022 to ₹65,790 million in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 54,208 million, crossing the previous year’s annual benchmark.
- Equity and Liabilities: Both equity and total liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly decreased from ₹16,745 million in March 2022 to ₹2,816 million by December 2023. This decline in profitability could be a concern for investors.
- Earnings per Share (EPS): The diluted EPS has also dropped from ₹33.49 in March 2022 to ₹5.64 by December 2023, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has declined from 46.87% to 7.08%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has declined, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Net Profit Ratio: The net profit ratio has also decreased from 8.3% to 5.4%, signaling reduced profitability relative to revenue.
Bharti Hexacom Limited IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in millions) | 54,052 | 65,790 | 54,208 |
| Equity (₹ in millions) | 36,605 | 42,095 | 44,161 |
| Expenses (₹ in millions) | 35,912 | 37,933 | 27,374 |
| Profit and Loss After Tax (₹ in millions) | 16,745 | 5,490 | 2,816 |
| Diluted EPS only (₹) | 33.49 | 10.98 | 5.64 |
| Return on Net Worth (%) | 46.87 | 13.83 | 7.08 |
| NAV per Equity Share (₹) | 73.21 | 84.19 | 88.32 |
| Total Assets (in millions) | 1,66,743 | 1,82,529 | 1,96,030 |
| Total Liabilities (in millions) | 1,30,138 | 1,40,434 | 1,51,869 |
| Debt Equity Ratio (in times) | 1.94 | 1.48 | 1.41 |
| Current Ratio (in times) | 0.65 | 0.47 | 0.41 |
| Net Profit Ratio (in %) | 8.3 | 7.2 | 5.4 |
Bharti Hexacom IPO Peer Comparison
Bharti Airtel Limited’s strong performance in revenue and profitability among the listed companies, while Vodafone Idea Limited faces significant challenges with negative EPS and RoNW. Reliance Jio Infocomm Limited demonstrates robust revenue but a comparatively lower EPS.
| Company | Type of Financial | Total Revenue (₹ in lakhs) | Face Value (₹) | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Bharti Hexacom Limited | Standalone | 65,790 | 5 | 10.98 | 10.98 | 13.83 | 84.19 |
| Bharti Airtel Limited | Consolidated | 1,391,448 | 5 | 14.80 | 14.57 | 15.84 | 136.72 |
| Vodafone Idea Limited | Consolidated | 421,772 | 10 | (8.43) | (8.43) | NA | (15.28) |
| Reliance Jio Infocomm Limited | Standalone | 907,860 | 10 | 4.05 | 1.07 | 8.43 | 48.00 |
Bharti Hexacom Limited IPO Objective
The main objective of Bharti Hexacom’s IPO is to enjoy the benefits of listing the share on the stock exchange and to build a brand reputation. As this is an offer for sale, the company will not raise any funds.
Bharti Hexacom IPO Risks And Challenges
Bharti Hexacom faces challenges like historical losses, risks in telecom network development, high churn rates, intense competition, and legal proceedings with potential adverse impacts on reputation, business, financials, and operations.
- The company has incurred losses in the past, and it may not achieve or sustain profitability in the future.
- The company is exposed to certain risks concerning the development, expansion, and maintenance of the mobile telecommunications networks. Failure to address these risks and control the operating costs may have an adverse effect on the business and profitability.
- The churn rate in the mobile telecommunications industry in India is high and the company cannot assure that it will be able to retain all the existing customers or will be successful in customer additions.
- The company faces intense competition that may reduce its market share and lower profits.
- There are outstanding legal proceedings involving the company and its promoters. Any adverse outcome in any of these proceedings may adversely affect the reputation, business, financial condition, and results of operations.
Bharti Hexacom IPO – Industry & Market Potential
Telecommunication has been playing a pivotal role in the country’s economic growth. It is the backbone of many industries, including e-commerce, media and entertainment, finance, information and technology (IT), healthcare, transportation, and logistics. The sector facilitates the seamless movement of data worldwide through wired or wireless channels and significantly influences economic progress.
The telecom market is constantly evolving with the integration of cutting-edge technologies over the years. This has widened the coverage of telecom services globally and made them an indispensable part of the daily lives of consumers. Telecom proved to be an essential service, especially during the COVID-19 pandemic, by enabling people to remain connected amid worldwide lockdowns.
The telecom industry mainly comprises wireless services, or mobile services, and wireline services, or fixed-line services. In India, wireless services accounted for 97.3% of total telecom customers and wireline services for the remaining 2.7% as of the nine months of Fiscal 2024.
Bharti Hexacom IPO – Type of Offer
Bharti Hexacom Limited plans to launch an IPO valued at INR 4,275 crores, offering to sell 7.50 crore shares. The company’s objectives include building a brand reputation and leveraging the benefits associated with being listed on the stock exchange. The details of the selling shareholder are as below:
| Name of the selling shareholder | Number of shares offered |
| Telecommunications Consultants IndiaLimited | 7.50 crore shares |
Bharti Hexacom IPO Offer Size
The offer size for Bharti Hexacom Limited’s IPO is INR 4,275 crores, comprising an offer to sell 7.50 crore shares. The company aims to build a brand reputation and achieve the benefits of listing.
Bharti Hexacom IPO Allotment Structure
Bharti Hexacom’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Bharti Hexacom Limited IPO?
To apply for the Bharti Hexacom IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Bharti Hexacom IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Bharti Hexacom IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Bharti Hexacom’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Bharti Hexacom IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Bharti Hexacom IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Bharti Hexacom IPO:
● Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the Bharti Hexacom IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Bharti Hexacom Ltd IPO Offer Registrar
The registrar for the Bharti Hexacom Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Kfin Technologies Limited
Selenium, Tower B, Plot No. 31 and 32, Financial District
Nanakramguda, Serilingampally
Hyderabad 500 032
Telangana, India
E-mail: [email protected]
Website: www.kfintech.com
Bharti Hexacom Limited IPO – FAQs
The allotment date of the Bharti Hexacom Limited IPO is April 8, 2024.
The price band of the issue is INR 542-570 per share.
The offer size for Bharat Hexacom Limited’s IPO is INR 4,275 crores, with an offer to sell 7.50 crore shares. The company’s goal is to build a brand reputation and capitalize on the advantages of being listed on the stock exchange.
The listing date of Bharti Hexacom’s IPO is April 12, 2024.
