Introduction
Bharti Hexacom’s (a subsidiary of Bharti Airtel) IPO proved to be a boon for its investors after the company officially got listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 12 April 2024 for a whooping 32.6% listing gains. The stock continued its upward rally and by the end of trading session the stock rose by 42% making a day of Rs. 880. The issue size of the IPO was 4,275 Cr. and was completely offer for sale. Subscription Rate of the IPO was as under: –
46.57x – Qualified Instituional Investors
10.13x – Non Institutional Ibnvestors
2.53x – Retail Investors
Total 28.6x (As of 05 Apr. 2024)
About the Company
Bharti Hexacom was established in the year 1995 and was bought by Bharti Airtel in the year 2004 making it a subsidiary of Telecom Giant Bharti Airtel. The company provides Telecom and Broadband services in the States of Rajasthan and North-Eastern States of Manipur, Nagaland, Assam, Mizoram, Tripura, Meghalaya and Arunachal Pradesh where the company has monopoly in telecom services and has over 49.8% of total market share as of 31 December, 2023 in the North-East Region. Mr. Jagdish Saksena Deepak is the MD of the company
About the IPO
The Initial Public Offer of Bharti Hexacom was opened for bid on 03 April, 2024 to 05 April, 2024 for at an issue size Rs. 4,275 crore which was completely offer for sale (OFS). One lot of the IPO was of Rs. 14,092/- for 26 shares at an issue price of Rs. 570.00. The listing of the IPO took place on 12 April 2024 at both the indexes NSE and BSE. Risks associated with the IPO was that the company had contingent liabilities which were not provided in Restated Financial Information;.
Financials and holding period
Company had strong financial and fundamental position as company’s revenue increased to Rs. 6579 Cr in the year 2023 as compared to 5405 Cr. in the 2022. Similarly company’s profit has significantly reversed teh charts from -1033 Cr in 2021 to 549 Cr in 2023. Assets of the companies also increased year by year. As per analyst “Aastha Jain” alongwith listing gains investors should look to hold this stock in portfolio for long term view considering its fundamentals and business models.
Govt. Approach
North-East has not developed significantly as compared to other regions of India. Telecom and broadband services are not of highest quality in this region. However in future if govt. comes up with the plan to make NE compatible in telecommunication Bharti Hexacom business will surely expand considering its monopoly in that region.
Market Session
After a long 2 week bull session bears took charge on Friday session as Nifty 50 slipped 243.4 points and Sensex dropped 793.25 points in the Friday’s session. However various broking firms and analyst have set target of 24,000 for Nifty till May end.