IPO Details
- Issue Type: Main Board IPO
- Issue Size: ₹4275.00 Crore
- Offer for Sale (OFS): Entire issue, consisting of 75,000,000 equity shares of ₹5 face value
- Price Band: ₹542 – ₹570 per share
- Minimum Order Quantity: 26 Shares
- Issue Open Date: April 3, 2024 (Closed)
- Issue Close Date: April 5, 2024 (Closed)
- Expected Listing Date: April 12, 2024 (Tentative)
- BSE Code: Yet to be assigned
- NSE Code: Yet to be assigned
- Registrar: Kfin Technologies Limited
IPO Timeline
| IPO Open Date: | April 3, 2024 |
| IPO Close Date: | April 5, 2024 |
| Basis of Allotment: | April 8, 2024 |
| Refunds: | April 10, 2024 |
| Credit to Demat Account: | April 10, 2024 |
| IPO Listing Date: | April 12, 2024 |
About Company
Incorporated in 1995, Bharti Hexacom Limited provides fixed-line telephone and broadband services to customers in Rajasthan and North East telecom circles in India.
The company provides services in states such as Rajasthan and Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. ;By December 31, 2023, the company has invested ₹206 billion in digital infrastructure capital expenditures to be future-ready.
As of December 31, 2023, the company has 27.1 million customers across 486 census towns.As of December 31, 2023, there were 616 distributors and 89,454 retail touchpoints in the distribution network.
As of December 31, 2023, the company had 19,144 thousand data customers, out of which 18,839 thousand were 4G and 5G customers.
OBJECTIVE
- To carry out the Offer for Sale of up to 75,000,000 Equity Shares by the Selling Shareholder; and
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges.
POSITIVE
- Brand association: Backed by the Bharti Airtel brand name, which suggests a certain level of credibility and experience in the telecom sector.
- Growth potential: The Indian telecom sector is expected to witness significant growth in the coming years, creating a potential opportunity for Bharti Hexacom.
- Focus on underserved markets: Operates in regions with lower broadband penetration, potentially offering room for subscriber base expansion.
NEGATIVE
- Limited track record: As a subsidiary of Bharti Airtel, Bharti Hexacom’s independent financial performance history is limited.
- Profitability concerns: Although revenue has grown, profitability remains a concern with a relatively low net profit margin.
- Dependence on parent company: Relies on Bharti Airtel for network infrastructure and technology, potentially limiting operational independence.
- High competition: The Indian telecom sector is highly competitive, with established players like Reliance Jio and Vodafone Idea vying for market share.
So, how does Bharti Hexacom Limited IPO Fare in Terms of Financials ?
Financial Details
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 19,603.00 | 18,252.90 | 16,674.30 | 15,003.50 |
| Revenue | 5,420.80 | 6,719.20 | 5,494.00 | 4,704.30 |
| Profit After Tax | 281.80 | 549.20 | 1,674.60 | -1,033.90 |
| Net Worth | 3,978.80 | 3,972.20 | 3,573.20 | 1,898.70 |
| Reserves and Surplus | 4,166.10 | 3,959.50 | 3,410.50 | 1,736.00 |
| Total Borrowing | 6,253.00 | 6,269.30 | 7,198.30 | 5,975.20 |
| Amount in ₹ Crore | ||||
FINANCIAL REVIEW
Positives:
- Revenue growth: Revenue has shown a steady increase year-over-year, with the most recent period (ending Dec 2023) showing a 23.8% increase from the previous year (ending Mar 2023). This indicates business growth.
- Improved profitability: Profit after tax for the period ending December 2023 (₹281.8 Cr) is positive compared to a loss in the previous fiscal year (ending Mar 2023: ₹-1033.9 Cr). This suggests a turnaround in profitability.
- Increasing net worth and reserves: Both net worth and reserves have increased year-over-year, indicating improved financial health.
Bharti Hexacom Limited IPO Valuation :
| Earning Per Share (EPS): | ₹ per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | % |
| Net Asset Value (NAV): | ₹ per Equity Share |
Bharti Hexacom Limited IPO – SWOT Analysis
Strengths
- Brand association: Backed by the Bharti Airtel brand, a leading telecom operator in India, offering brand recognition and credibility.
- Focus on underserved markets: Operates in regions with lower broadband penetration, potentially offering room for subscriber base expansion and market share growth.
- Growth potential: The Indian telecom sector is expected to witness significant growth in the coming years, creating a potential opportunity for Bharti Hexacom.
- Improved profitability: Profitability has shown signs of improvement in the recent period (ending Dec 2023) compared to a significant loss in the previous year.
Weaknesses
- Limited track record: As a subsidiary of Bharti Airtel, Bharti Hexacom’s independent financial performance history is limited, making it difficult to assess its long-term sustainability.
- High debt: Total borrowing remains high, exceeding net worth, potentially limiting financial flexibility and future growth opportunities.
- Profitability fluctuations: The significant loss in the previous fiscal year raises concerns about the company’s ability to consistently generate profits.
- Dependence on parent company: Relies on Bharti Airtel for network infrastructure and technology, potentially limiting operational independence and innovation.
Opportunities
- Expanding subscriber base: Focus on acquiring new subscribers in its operational areas with lower broadband penetration.
- Data usage growth: Capitalize on the increasing demand for data services in India by offering attractive data plans and value-added services.
- Government initiatives: Leverage government initiatives promoting broadband penetration in rural and underserved areas.
- Technological advancements: Adopt new technologies like 5G to enhance network capacity and service offerings.
Threats
- High competition: The Indian telecom sector is highly competitive with established players like Reliance Jio and Vodafone Idea vying for market share. Price wars and intense competition can put pressure on margins.
- Regulatory changes: Changes in government regulations or licensing fees can impact profitability.
- Technological disruptions: Rapid advancements in telecom technologies can render existing infrastructure obsolete, requiring continuous investments in network upgrades.
- Economic slowdown: An economic slowdown could decrease consumer spending on telecom services, impacting subscriber growth and revenue.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of. Bharti Hexacom Limited IPO :
Peers:
- Reliance Jio Infocomm Limited: A leading telecom operator in India known for its aggressive 4G rollout and affordable data plans.
- Vodafone Idea Limited: Another major telecom operator with a vast customer base across India.
- Bharti Airtel Limited (Parent Company): While technically the parent company, including them in the peer group allows for a comparison with a more established telecom player under the Bharti Airtel brand.
Bharti Hexacom Limited IPO GMP
- Grey market premium as on 03-04-2024 = Rs 56/ Share
Disclaimer:
- IPO Grey Market Premium (Bharti Hexacom Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
Bharti Hexacom Limited IPO
🔴 Live Subscription Status 🔴
05/04/2024 05:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 2,25,00,000 | 0.29 | 0.82 | 48.57 |
| Non Institutional Investors(NIIs) | 1,12,50,000 | 0.19 | 1.72 | 10.52 |
| Retail Individual Investors(RIIs) | 75,00,000 | 0.40 | 1.16 | 2.83 |
| Total | 4,12,50,000 | 0.28 | 1.12 | 29.88 |
FINAL TAKEAWAY
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