BHARTI HEXACOM LTD (MAINBOARD)
April 3, 2024 – April 5, 2024
| Price | ₹542 - ₹570 |
| Premium | ₹145 |
|---|---|
| Lot size | 26 |
| Allotment | Apr 8, 2024 |
| Listing | Apr 12, 2024 |
Bharti Crescent, 1, Nelson Mandela Road,
Vasant Kunj, Phase II, New Delhi 110 070, India
Telephone: 011-46666100
Email: bhartihexacom@bharti.in
Website: www.bhartihexacom.in
Last Updated as on 05-Apr-2024 17:54:00
| Category | Offered | Applied | Times |
|---|---|---|---|
| QIBs | 22500000 | 1092925340 | 48.57 |
| HNIs | 11250000 | 118291602 | 10.51 |
| HNIs (10+L) | 7500000 | 92048970 | 12.27 |
| HNIs (2-10L) | 3750000 | 26242632 | 7 |
| Retail | 7500000 | 21133632 | 2.82 |
| Total | 41250000 | 1232350574 | 29.88 |
| Total Application : 616,072 | |||
| QIB Interest Cost per share (7 Days) | |||||
|---|---|---|---|---|---|
| @7% ₹37.17 | @8% ₹42.48 | @9% ₹47.78 | @10% ₹53.09 | @11% ₹58.4 | @12% ₹63.71 |
| Big HNI (10+L) Cost per lot (7 Days) |
|---|
| Assuming fix interest of ₹2000 per application Big HNI (10+L) costing for every 1 lot allotment is ₹4908 |
| Category | Lot(s) | Qty | Amount | Reserved |
|---|---|---|---|---|
| Retail | 1 | 26 | 14820 | 288461 |
| sHNI | 14 | 364 | 207480 | 10302 |
| bHNI | 68 | 1768 | 1007760 | 20604 |
Top 5 Anchor Details
| Name of Anchor | No. of Shares | % Portion | Amount (cr) |
|---|---|---|---|
| Abu dhabi investment authority - monsoon | 1754402 | 5.20% | 100.00 |
| Stiching depositary APG emerging markets equity pool | 1578954 | 4.68% | 90.00 |
| Small cap world fund, INC | 1371994 | 4.07% | 78.20 |
| SBI contra fund | 1333358 | 3.95% | 76.00 |
| Fidelity funds - sustainable asia equity funds | 934986 | 2.77% | 53.29 |
| Total | 6973694 | 20.67% | 397.49 |
Established in 1995, Bharti Hexacom Limited is a telecommunications provider serving regions including Rajasthan and the North East circles of India. With a focus on fixed-line telephone and broadband services, the company has expanded its reach to states such as Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. By prioritizing digital infrastructure investments, totaling ₹206 billion by December 31, 2023, Bharti Hexacom aims to stay ahead in the evolving telecom landscape. Boasting a substantial customer base of 27.1 million spread across 486 census towns, the company also maintains a robust distribution network comprising 616 distributors and 89,454 retail touchpoints. Notably, as of the same date, Bharti Hexacom had garnered 19,144 thousand data customers, a significant portion of which, 18,839 thousand, were 4G and 5G subscribers, reflecting its commitment to technological advancement and customer satisfaction.
IPO Details
| Issue Size | Up to 75,000,000 Equity Shares aggregating up to [4275] cr. |
| Offer For Sale | Up to 75,000,000 Equity Shares aggregating up to [4275] cr. |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 500,000,000 |
| Share holding post issue | 500,000,000 |
IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more Than 75% of the net Offer |
| Retail Shares Offered | Not more than 10% of the Offer |
| NII (HNI) Shares Offered | Not more than 15% of the Offer |
Key Performance Indicators
| KPI | Dec-23 | Mar-23 | Mar-22 |
|---|---|---|---|
| ROCE | 10.68% | 10.72% | 4.10% |
| RONW | 7.08% | 13.83% | 46.87% |
| D/E | 1.41 | 1.48 | 1.94 |
| EPS (basic & diluted) | 5.64 | 10.98 | 33.49 |
| P/BV | 6.45 | ||
P/E Pre IPO | 51.89 |
IPO Financials
| Period | Dec-23 | Mar-23 | Mar-22 | Mar-21 |
|---|---|---|---|---|
| Assets | 19,603 | 18,252.90 | 16,674.30 | 15,003.50 |
| Revenue | 5,421 | 6,719.20 | 5,494.00 | 4,704.30 |
| Profit After Tax | 282 | 549 | 1,674.60 | -1,033.90 |
| Net Worth | 3,978.80 | 3,972.20 | 3,573.20 | 1,898.70 |
| Reserve & surplus | 4166.10 | 3959.20 | 3410.50 | 1736 |
| Total Borrowing | 6,253 | 6,269.30 | 7,198.30 | 5,975.20 |
| Amount in crores | ||||
Strength Factors
Strong Parentage and Established Brand: The company benefits from a strong parent company or lineage, which provides stability, resources, and credibility. This backing contributes to a robust brand identity that is trusted by customers, stakeholders, and the market at large.
Building a Future-Ready Network: The company's proactive approach towards building a future-ready network positions it ahead of competitors in adapting to technological advancements, market trends, and changing consumer preferences. By investing in cutting-edge technologies, infrastructure, and talent, the company ensures scalability, agility, and relevance in an ever-evolving business landscape.
Extensive Distribution and Service Network: The company boasts an extensive distribution and service network, which enhances its reach, accessibility, and customer satisfaction. With a wide-reaching network of distribution channels, sales outlets, and service centers, the company can efficiently deliver products, provide support, and cater to diverse customer needs across various geographic locations
Risk Factors
Regional Vulnerability: The company's reliance on revenues from providing mobile telephone services in specific regions, particularly Rajasthan and the North East circle, exposes it to risks associated with any unfavorable developments in those areas. Factors such as regulatory changes, economic downturns, or infrastructural challenges in these regions could negatively impact the company's business operations, financial performance, and overall stability.
Regulatory and Pricing Risks: Revenue generated from telecom services is susceptible to regulatory constraints, pricing pressure, and reductions in average revenue per user (ARPU). Regulatory ceilings on pricing or competitive pressures in the telecom market could lead to a decline in revenues, negatively impacting the company's profitability, financial stability, and growth prospects.
Indebtedness and Refinancing Risk: The company's significant indebtedness requires it to service debt obligations and comply with lenders' covenants to avoid default. Failure to meet debt obligations or refinance existing debt exposes the company to default risks, which could result in severe consequences such as asset seizure, credit rating downgrades, or loss of investor confidence. Such outcomes could adversely affect the company's business operations, profitability, and long-term viability.