The initial public offer (IPO) of Bharti Hexacom, owned by telecom major Bharti Airtel, will likely be launched in April first week, seeking valuation of over Rs 28,000 crore, according to a report by CNBC-TV18.
Bharti Hexacom IPO size will likely be around Rs 4,300 crore, the report said.
On March 19, Bharti Hexacom, received approval from the Securities and Exchange Board of India (SEBI) to go ahead with its IPO.
According to the draft red herring prospectus (DRHP) filed by the communications solutions provider with the market regulator on January 19, promoter Bharti Airtel holds a 70 percent stake (35 crore equity shares) and the remaining 30 percent shareholding (equivalent to 15 crore equity shares) is held by non-promoter Telecommunications Consultants India. TCIL will sell 10 crore shares in Bharti Hexacom through IPO, the channel reported.
Bharti Hexacom, which offers consumer mobile services, fixed-line telephone and broadband services under the Airtel brand to customers in Rajasthan and the North East, recorded a net profit of Rs 549.2 crore in FY23, a decline of 67.2 percent compared to the previous year. Its profit in FY22 was supported by exceptional gains of Rs 1,951.1 crore. Revenue from operations remained strong rising 21.7 percent to Rs 6,579 crore.
In the six-month period ended September FY24, net profit dropped 64.6 percent year-on-year to Rs 69.1 crore, impacted by higher tax costs and exceptional loss, but revenue during the same period grew by 8 percent to Rs 3,420.2 crore.
SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are acting as book-running lead managers to the issue.
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