Bharti Hexacom, the subsidiary of the country's second-largest telecom operator Bharti Airtel, has raised around Rs 1,924 crore through its anchor book, ahead of the opening of the IPO, which includes top global investors like Capital Group, Fidelity, Blackrock and ADIA, people familiar with the development told Moneycontrol on the condition of anonymity.
The Rs 4,275-crore public issue opens on April 3 and subscription will close on April 5.
“The demand seems to be strong with about 70-80 institutional investors offering to participate, with around 50 long-only funds getting allocation in the anchor book, which was subscribed nearly 30 times on April 2,” said one of the persons cited above.
Other large foreign institutional investors like Wellington Management, Schroder, Aberdeen, and Nomura were also part of the anchor book, a second person said.
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According to a third person, all the top 10 mutual fund houses by AUM in the country as well as some of the large domestic insurance companies like SBI Life Insurance, HDFC Life Insurance and ICICI Prudential life Insurance, also showed interest in the first IPO from the Bharti Group after Bharti Infratel in 2012.
Bharti Airtel declined to comment in response to a detailed query from Moneycontrol on the anchor book allocation and demand.
Bharti Hexacom will be the first IPO in the new financial year. The public issue comprises purely an offer-for-sale by the public shareholder Telecommunications Consultants India, which is going to dilute 15 percent shareholding (equivalent to 7.5 crore equity shares).
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The promoter Bharti Airtel holds 70 percent stake in the company and the remaining 30 percent stake is held by Telecommunications Consultants India.
Bharti Hexacom provides mobile services, fixed-line telephone and broadband services, under the 'Airtel' brand to customers in Rajasthan and the North East region in India and has fixed the price band for the public issue at Rs 542-570 per share.
SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are acting as the merchant bankers to the issue.
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