Bharti Airtel gains focus as reports suggest process has begun for Hexacom IPO

In the past three months, the stock of Bharti Airtel has surged 10 percent as against a percent rise in the benchmark Sensex

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26 Aug, 2025 12:21

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Shares of Bharti Airtel traded mildly in the green at Rs 971 on November 23 after a CNBC-TV18 report suggested that the telecom provider has begun the process of taking its subsidiary Bharti Hexacom public. This would be the first IPO from the Bharti Group after over a decade, if it does materialise.

In the past three months, the stock of Bharti Airtel has surged 10 percent as against a 1 percent rise in the benchmark Sensex.

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According to the news report, Bharti Hexacom’s valuation is pegged at Rs 20,000 crore and the listing process may be completed by early 2024. “Parent company Bharti Airtel that owns 70 percent stake in Bharti Hexacom has appointed investment bankers like Axis Capital, SBI Cap, IIFL, and ICICI Securities to begin the IPO process,” the CNBC-TV18 report said.

The last initial public offering (IPO) from Bharti Group was of Bharti Infratel, now known as Indus Towers which was listed in 2012.

Additionally, the public issue of Bharti Hexacom is being aimed at giving the government-owned Telecommunications Consultants India (TCIL) a partial or full exit, said sources in the news report. TCIL holds 30 percent in Bharti Hexacom.

That apart, the Department of Telecommunications (DoT), Tamil Nadu, imposed a penalty of Rs 2.4 lakh on Bharti Airtel on November 22 for alleged violation of subscriber verification norms.

Also read: Bharti Airtel committee approves allotment of 14.16 lakh equity shares to certain FCCBs holders

In the September-ended quarter, Bharti Airtel’s consolidated net profit declined 37 percent on-year, while revenue from operations grew 7.2 percent year-on-year (YoY).

For its Indian operations, the average revenue per user (ARPU) per month improved to Rs 203, up 1.5 percent quarter on quarter, whereas mobile customer count increased 4.4 percent to 34.23 crore.

Analysts at Motilal Oswal shared a ‘buy’ call on the counter post-results, with a target price of Rs 1,070 per share.

“In the near term, Bharti's earnings could soften to a QoQ growth rate of ~2 percent vs average 5 percent seen in the last eight quarters. It could be attributed to moderating growth from 4G mix benefits, low probability of tariff hikes and softening market share gains. However, over the next 2-3 years, it has the opportunity to grow its EBITDA by 40-50 percent and halve its net debt, gaining from improved ARPU, non-wireless segments, and premiumisation of customers,” the brokerage said.

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