Subscribe to Bharti Hexacom Ltd: Way2Wealth

Way2Wealth, IPO report on Bharti Hexacom Ltd

The company was originally incorporated in 1995 as ‘Hexacom India Ltd’. In2004, the name of the company was changed to “Bharti Hexacom Ltd” (BHL) whenAirtel acquired a majority equity interest in the company. Airtel owns 70%, while the Government of India through Telecommunications ConsultantsIndia Ltd (TCIL) owns 30% of the company’s equity share capital. Bharti Hexacom is communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North-East telecommunication circles in India. Bharti Hexacom holds telecommunication licenses and spectrum in its twocircles. It has spectrum portfolio with varied pool of mid band spectrum (1800/2100/2300 MHz bands). None of the existing spectrum expires before the year 2030, and the validity of the spectrumpool ranges betweenthe years 2030 and 2042.

Valuation and Outlook

The company is having strong parentage of “Airtel” group. Its one-time accounting adjustments kept the net profit on de-growth mode, but at the gross level, it marked growth. Based on 9MFY24 earnings, the issue appears fully priced. It enjoys virtual leadership in the telecom circles it is operating and is confident of maintaining the lead. Investors can SUBSCRIBE for medium to long term rewards.