The board of Bharti Airtel has approved the initial public offering of its subsidiary Bharti Hexacom, a regulatory filing stated on January 20.
Bharti Airtel, one of the three telecom majors of India, owns 70 percent stake in Bharti Hexacom, whereas, the remaining 30 percent is owned by the Government of India.
The IPO will comprise of an offer-for-sale (OFS) of 10 crore equity shares, of face value of Rs 5 each. This constitutes "20 percent of the company's paid-up share capital", as per the exchange filing.
The offer will not have a fresh issue, the company clarified.
The IPO will allow the government to sell its stake in Bharti Hexacom, as the 10 crore shares that are to be offered for sale are currently held by Telecommunications Consultants India Ltd, a central public undertaking.
"Accordingly, the company has filed a draft red herring prospectus (DRHP) dated January 19, 2024 with the Securities and Exchange Board of India, for a proposed IPO for the offer by Telecommunications Consultant India Ltd," the regulatory filing said.
Since the proposed offer is an OFS, Bharti Hexacom will not receive any proceeds from the IPO, the company further noted.
Notably, the last initial public offering from Bharti Group was of Bharti Infratel, now known as Indus Towers which was listed in 2012.
The announcement related to Bharti Hexacom IPO came on a day when Bharti Airtel's shares were trading in the green on the bourses. At 3 pm, the shares were trading at Rs 1,124.30 apiece on the BSE, up nearly 3.5 percent as against the previous day's close.
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