Bharti Hexacom IPO Analysis and Review

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Bharti Hexacom, a subsidiary of Bharti Airtel, is set to launch its Initial Public Offering (IPO) in the market. The company focuses on communication services primarily in Rajasthan and northeastern states of India. This report aims to provide an analysis of the IPO, including key details, subscription status, Grey Market Premium (GMP), and a recommendation on whether to subscribe or not.

Key Details of the IPO:

IPO Dates: April 3rd to April 5th, 2024.

Price Band: ₹542 to ₹570 per share.

IPO Size: ₹1,924 crores raised from anchor investors.

Lot Size: 26 equity shares, with multiples of 26 thereafter.

Reserved Portions: 75% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.

Offering: The IPO consists solely of an Offer-for-Sale (OFS) by Telecommunications Consultants India, selling 15% of the company's equity shares.

Subscription Status:

Overall Subscription: 5% as of the first day of subscription.

Retail Portion: Subscribed at 21%.

NII Portion: Subscribed at 6%.

QIB Portion: Yet to be subscribed.

Grey Market Premium (GMP):

GMP stands at +₹52, indicating a premium of ₹52 on the grey market.

Projected listing price: ₹622 per share, a 9.12% increase from the upper end of the IPO price range.

Analyst Recommendations:

Analysts suggest subscribing to the IPO for potential gains.

Bharti Hexacom enjoys a virtual leadership position in its operating telecom circles.

The company is confident in maintaining its lead and does not require further funding for expansion.

Based on 9MFY24 earnings, the issue appears fully priced, indicating potential for medium to long-term rewards.

Conclusion and Recommendation:

Bharti Hexacom IPO presents an opportunity for investors to participate in a company with a strong presence in its operating regions and potential for growth. With the GMP indicating a premium and analyst recommendations leaning towards subscription, investors may consider subscribing to the IPO for potential gains, especially for medium to long-term investment horizons.

Disclaimer: This report is for informational purposes only and should not be construed as financial advice. Investors are advised to conduct their own research and consult with financial professionals before making investment decisions.