Bharti Hexacom sets Rs 542-570 band for IPO

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Bharti Hexacom, a subsidiary of Bharti Artel, fixed a price band of Rs 542 to Rs 570 per share for its Rs 4,275-crore initial public offering (IPO). The IPO is scheduled to hit the market from April 2, according to a public notice.

The issue is going to be completely offer for sale and the company will not receive any money from the sale.

At present, promoter Bharti Airtel holds 70 per cent stake and the remaining 30 per cent stake is owned by Telecommunications Consultants India (TCIL). The state-owned copany is expected to shed half its stake in the IPO. Bharti on the other hand has decided to let go of its right of first refusal for TCIL shares. This would keep Bharti’s shareholding at 70% after the IPO.

This will mark the first public offering in the 2024-25 fiscal year. Bharti Hexacom provides telecommunication services in Rajasthan and the North East.

At the upper-end of the price band, the IPO size will be Rs 4,275 crore. About 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Bharti Hexacom, which filed its preliminary IPO papers with Sebi on January 20, obtained its nod on March 11, to float the maiden public issue. SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are the book running lead managers of the public issue.