Bharti Hexacom IPO Day 3: Issue subscribed 29.88 times; check latest GMP & expected listing date

Bharti Hexacom's initial public offering (IPO) on Friday witnessed a strong response from investors during the last day of bidding process. Bharti Hexacom is a wholly-owned subsidiary of telecom major Bharti Airtel Ltd.

As per BSE data, a total of 1,23,24,80,626 bids were placed as against 4,12,50,000 equity shares offered. The issue was subscribed 29.88 times. The New Delhi-based firm sold its shares in the price band of Rs 542-570 apiece.

Qualified institutional buyers (QIBs) took the lead, buying 48.57 times the allotted quota. The allocation for retail investors was subscribed 2.83 times, while the portion reserved for non-institutional investors saw a subscription of 10.52 times.

Investors were able to apply for a minimum of 26 equity shares and in multiples thereafter. The company has plans to raise Rs 4,275 crore via the IPO, which was entirely an offer-for-sale (OFS) of 7,50,00,000 equity shares.

Since the issue is an OFS, it will not receive any proceeds from the offer and all the offer proceeds will be received by the selling shareholder Telecommunications Consultants India Limited (TCIL). Post issue, parent Airtel will retain its 70 per cent stake in Bharti Hexacom, while TCIL's stake will drop to 15 per cent.

Ahead of the initial share sale, Bharti Hexacom raised around Rs 1,924 crore from anchor investors, including Blackrock Global Funds, Pictet, Smallcap World Fund, Capital Group, American Funds, Fidelity Funds, Abu Dhabi Investment Authority, Morgan Stanley, HSBC, among others.

Grey market premium (GMP)

In the grey market, Bharti Hexacom shares were last seen trading at a premium of 12.41 per cent against its issue price of Rs 570 (upper price band). The stock is likely to get listed on April 12, 2024.

The company provides fixed-line telephone and broadband services to customers in Rajasthan and North East telecom circles in India. The company provides services in states such as Rajasthan and Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.