Bharti Airtel Ltd.'s subsidiary, Bharti Hexacom Ltd., is planning to launch its initial share sale in the next two weeks after it received the regulator's nod to float its public issue.
Bharti Hexacom is planning to launch its initial public offering in the first week of April, according to people with knowledge of the matter who spoke to NDTV Profit on the condition of anonymity. The company, which filed its draft papers with the Securities and Exchange Board of India in January, got the nod on March 11 to float its issue.
The issue size is going to be around Rs 4,000–5,000 crore, one of the persons quoted above said. The issue is a pure offer for the sale of shares by the government-owned Telecommunication Consultant India Ltd.
Under the OFS, TCI will offload 10 crore equity shares. The initial public offer will not have any fresh issuance of equity shares, and since it is an OFS, Bharti Hexacom will not receive any proceeds from the issue as they will go to the selling shareholder.
Bharti Airtel has a 70% stake in the company. TCI's shareholding will reduce to 10% after the share sale. The government currently holds a 30% stake in the company.
SBI Capital Markets Ltd., Axis Capital, BOB Capital Markets, ICICI Securities and IIFL Securities are the book-running lead managers for the issue. The company's shares are proposed to be listed on the BSE and NSE.
Bharti Hexacom, which was founded in 1995, operates only in Rajasthan and the North East. It also provides fixed-line and broadband services in Rajasthan.
It reported a net profit of Rs 69 crore at the end of September 2023, as compared with Rs 195.2 crore in the six months ending September 2022. It reported an exceptional loss of Rs 303 crore from April to September 2023. Its revenue rose to Rs 3,420 crore for the six months ended September 2023 from Rs 3,167 crore for the corresponding period in FY22.
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