Bharti Hexacom IPO Opens: GMP Promises 6-10% Listing Gains!

Bharti Hexacom is a 29 year old company under the telecom giant Bharti Airtel. It provides consumer mobile services, fixed-line telephone and broadband services in Rajasthan and North East telecom circles. The Bharti Hexacom IPO is entirely an offer-for-sale (OFS) by Telecommunications Consultants India, which is offering 7.5 crore equity shares, amounting to Rs 4275 crore. Thus, the company will not receive any proceeds from this IPO. It promises listing profit as the Bharti Hexacom IPO GMP is in positive from the past 7 days! Still, will have to wait for a few more days to get its exact position in the stock market. The Bharti Hexacom IPO opens today (3rd April) for subscription after raising ₹1924 Crores from anchor investors yesterday. 

Bharti Airtel is the promoter company of Bharti Hexacom, which holds 70% stake (35 crore equity shares) of the company, while remaining 30% stake (15 crore shares) are owned by non-promoter Telecommunications Consultants India Limited (TCIL by Indian Govt). TCIL is an engineering and consulting firm that offers developing nations all over the world (pan-African, West Asia) access to Indian telecom expertise in all areas of information technology and telecom.

Bharti Hexacom had invested ₹20,600 crores in digital infrastructure capital expenditures to be future-ready by December 31, 2023. Moreover, it has 2.71 crore customers across 486 census towns. Besides, it had 616 distributors and 89,454 retail touchpoints in the distribution network as of December 2023. These factors have resulted in a positive Bharti Hexacom IPO GMP so far.

Bharti Hexacom reported a net profit of Rs 281.80 crore with a revenue of Rs 5420.80 crore for the nine months ended on December 31, 2023. The company reported a net profit at Rs 549.20 crore with a revenue of Rs 6719.20 crore for the financial year ended on March 31, 2023. However, from March 2022-2023, the company's profit after tax (PAT) decreased by (-)67.2% while its revenue climbed by (+)22.3%. This fall has impacted Bharti Hexacom IPO GMP as it dropped from ₹65 to ₹30.

Investors can start trading in Bharti Hexacom IPO shares from April 12. At the upper price band, Bharti Hexacom will have a market cap of Rs 28,500 crore. As per the Red Herring Prospectus (RHP), the company's listed peers are Bharti Airtel Ltd (with a P/E of 82.16), Vodafone Idea Ltd (with a P/E of (1.63)), and Reliance Jio Infocomm Ltd. Its pre-IPO P/E ratio is 51.89 while post-IPO increased to 75.85 which is impressive.

Disclaimer: This article is for information purpose only so please consult your financial advisor before making any investment decisions.

The Bharti Hexacom IPO GMP (gray market premium) as of 26th March 2024, 12:50 is ₹35. It promises around 6-10% listing profit so expect the GMP to go up as there is still a week to go for this IPO to open. Stay tuned for latest Bharti Hexacom IPO GMP updates.

Bharti Airtel took a major stake in this company 20 years back and still backs it. Now with the Bharti Hexacom IPO, the company plans to strengthen further. Let’s see how this 1st IPO of FY 2024-25 opens on 12th April (depends on Bharti Hexacom GMP in the coming days)! Whatever be the case, good Long-Term investment returns are expected in this established telecom & Internet company.