Bharti Hexacom Limited IPO
Bharti Hexacom Limited, is offering an exciting opportunity for investors through its Initial Public Offering (IPO).
The company aims to raise ₹4,275 crores through fresh issuance of 7.5 crore shares.
Lead Manager & Registrar: SBI Capital Markets Limited, Axis Capital Limited, Bob Capital Markets Limited, ICICI Securities Limited and IIFL Securities Ltd are the book running lead managers, while Kfin Technologies Limited is the registrar for the issue.
About Bharti Hexacom
Bharti Hexacom Limited is a leading communications solutions provider, offering a wide range of services including consumer mobile services, fixed-line telephone, and broadband services. As of September 30, 2023, the company is present in 486 census towns and serves an aggregate of 29.1 million customers across Rajasthan and North East.
The company has shown consistent consumer growth in Rajasthan, increasing from 33.1% as of March 31, 2021, to 35.1% as of September 30, 2023, and in the North East from 43.6% to 49.4% during the same period. It has the highest number of Visitor Location Register (“VLR”) customers (6.3 million) and a VLR market share of 52.0% in the North East circle, and the second-highest in the Rajasthan circle with 23.2 million customers and a VLR market share of 38.3%, as of September 30, 2023.
Bharti Hexacom has a robust network infrastructure with a mix of owned and leased assets. The company has 23,748 network towers, of which 5,005 towers owned by them. Their spectrum portfolio includes a varied pool of mid-band spectrum (1800/2100/2300MHz bands), enabling them to offer 5G Plus services at a low cost of ownership.
The company has extensive distribution and service network, with 617 distributors and 88,586 retail touchpoints.
As part of the Airtel family, the company benefits from synergies with the promoter, Airtel. Bharti Hexacom is focused on premiumizing portfolio and delivering exceptional customer experiences, for sustained growth and success in the telecommunications industry.
Services Offered:
- Mobile Services
- Fixed-Line Telephones
- Broadband
Key Points about the IPO
| IPO Opens On | April 03, 2024 |
|---|---|
| IPO Closes On | April 05, 2024 |
| Date of Listing | April 12, 2024 |
| Price Band Per Share | ₹542 to ₹570 |
| Lot Size | 26 Shares |
| Minimum investment | ₹14,092 |
| Total Issue Size | ₹4275 Cr |
| Offer for Sale | ₹4275 Cr |
| Employee Discount | NA |
| Exchanges Listing On | BSE, NSE |
Bharti Hexacom Key financials (in ₹ Cr)
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 | 31 Dec 2023 |
| Assets | 15,003.50 | 16,674.30 | 18,252.90 | 19,603.00 |
| Revenue | 4,704.30 | 5,494.00 | 6,719.20 | 5,420.80 |
| Profit After Tax | 1,033.90 | 1,674.60 | 549.2 | 281.8 |
| Net Worth | 1,898.70 | 3,573.20 | 3,972.20 | 3,978.80 |
| Reserves and Surplus | 1,736.00 | 3,410.50 | 3,959.50 | 4,166.10 |
| Total Borrowing | 5,975.20 | 7,198.30 | 6,269.30 | 6,253.00 |
Performance Indicators
| Debt/Equity | 1.41 |
| RoNW | 13.83% |
| P/BV | 6.45 |
Key Strengths
Market Leadership & Strong Customer Base:
Established leadership position in its operating area with a large and loyal customer base.
High-Growth Market Presence:
Operates in the Rajasthan and North East circles, known for their low penetration and high growth potential in the communications sector.
Trusted Brand & Extensive Network:
Recognized brand within the industry (Airtel) with a widespread distribution and service network to reach customers effectively.
Reliable Network Infrastructure:
Strong network infrastructure with a mix of owned and leased assets for stability.
Experienced Management Team:
Seasoned leadership team to guide the company’s growth and success.
Key Risks
Risks associated with economic conditions:
Downturns in the economy could negatively affect customer spending and lead to increased competition.
Regulatory risks:
Changes in government regulations could impact the company’s ability to operate or increase its costs.
Risks associated with competition:
The company faces competition from other telecommunication providers, which could put pressure on prices and margins.
Technological risks:
The company needs to keep up with the latest technologies in order to remain competitive. Failure to do so could lead to a loss of market share.
Dependence on key personnel:
The company’s success is dependent on the skills and experience of its key personnel. If these employees leave the company, it could have a negative impact on its operations.
