In a regulatory filing on January 20, Bharti Airtel, one of India’s top three telecom companies, gave the green light for the initial public offering (IPO) of its subsidiary, Bharti Hexacom.
Bharti Airtel holds a 70% stake in Bharti Hexacom, while the remaining 30% is owned by the Government of India. The IPO will involve an offer-for-sale (OFS) of 10 crore equity shares, each with a face value of Rs 5. This represents “20 percent of the company’s paid-up share capital,” according to the exchange filing.
It’s important to note that this offering will not include a fresh issue of shares, as clarified by the company. The IPO provides an opportunity for the government to divest its stake in Bharti Hexacom, with the 10 crore shares for sale currently held by Telecommunications Consultants India Ltd, a central public undertaking.
On January 19, 2024, the company submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India, outlining the proposed IPO for the offer by Telecommunications Consultant India Ltd, as stated in the regulatory filing.
Given that this is an OFS, Bharti Hexacom will not receive any proceeds from the IPO, emphasized the company.
The announcement coincided with a positive day for Bharti Airtel’s shares, trading at Rs 1,124.30 apiece on the BSE at 3 pm, marking a nearly 3.5% increase compared to the previous day’s closing value.
