Airtel arm’s public issue to open on April 3, TCIL to offload 15% stake

Bharti Hexacom, a subsidiary of Bharti Airtel, is scheduled to make its debut on the stock market on April 3, marking the inaugural initial public offering of the 2024-25 fiscal year.

The public offering is slated to conclude on April 5. Additionally, according to a statement filed with the exchange, the bidding for anchor investors will commence on April 2, 2024, a day before the official opening of the bid/offer period.

The IPO of Bharti Hexacom comprises exclusively of an offer-for-sale (OFS) segment, devoid of any issuance of new shares.

Telecommunications Consultants India, the singular public shareholder in the firm, intends to sell 7.5 crore equity shares, equating to a 15% stake in the OFS.

Bharti Airtel, led by Sunil Mittal, owns a 70% stake, equivalent to 35 crore shares, while the remaining 30% ownership, comprising 15 crore equity shares, is held by non-promoter TCIL.

In accordance with the company’s valuation target range of ₹28,000 crore to ₹35,000 crore, the public sector firm aims to reach the anticipated figure through the gradual offloading of equity in two phases.

Operating in Rajasthan and the Northeast regions of India, Bharti Hexacom provides mobile services, with Airtel retaining a majority stake in the subsidiary.

The Northeast telecommunication circles encompass Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.

Improving from an average revenue per user (ARPU) of ₹135 in FY21, Bharti Hexacom has elevated this figure to ₹195 during the six-month period ending September 2023.

As of September 2023, the company’s customer base totaled 29.1 million across both circles.

Bharti Hexacom possesses a spectrum portfolio inclusive of a diverse range of mid-band spectrum, enabling the provision of 5G plus services to its customers.

For the six months ending in September, Bharti Hexacom reported a revenue of ₹3,420 crore, up from ₹3,167 crore the previous year. However, profits decreased to ₹69 crore from ₹195 crore in the preceding year.

SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities serve as the book-running lead managers for the issue. Livemint