In a significant move, Bharti Airtel’s board approved the initiation of the initial public offering (IPO) for its subsidiary, Bharti Hexacom, as disclosed in a regulatory filing on January 20. Bharti Airtel, a prominent player in India’s telecom sector, holds a 70% stake in Bharti Hexacom, while the remaining 30% is under the ownership of the Government of India.
The IPO is set to consist of an offer-for-sale (OFS) of 10 crore equity shares, each having a face value of Rs 5. This offering represents “20% of the company’s paid-up share capital.” Importantly, the offer will not involve a fresh issue of shares, and the government aims to divest its stake in Bharti Hexacom through this IPO. The 10 crore shares for sale are currently held by Telecommunications Consultants India Ltd, a central public undertaking.
The company has taken a significant step towards the IPO by filing a draft red herring prospectus (DRHP) dated January 19, 2024, with the Securities and Exchange Board of India (SEBI). This filing outlines the proposed IPO for the offer by Telecommunications Consultant India Ltd.
This development is noteworthy as it marks the first IPO move by Bharti Group since the listing of Bharti Infratel, now known as Indus Towers, in 2012. The announcement coincided with a day when Bharti Airtel’s shares demonstrated positive momentum on the stock exchanges.
The greenlight for Bharti Hexacom’s IPO signifies a strategic move by Bharti Airtel and sets the stage for a significant development in the telecom sector.