Bharti Hexacom IPO: Stock lists at 32% premium against issue price

Bharti Hexacom, a subsidiary of Bharti Airtel, made an impressive stock market debut on April 12 as its shares listed at Rs 755 on the BSE, marking a premium of 32.4% over the issue price of Rs 570.

The stellar listing gains surpassed analyst estimates of a 12-15% premium, reflecting robust investor demand for the company’s Rs 4,275-crore initial public offering (IPO) – India’s biggest public issue in one year.

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Bharti Hexacom’s IPO, an offer-for-sale of 7.5 crore shares by Telecommunications Consultants India (the only public shareholder), had garnered a massive subscription of nearly 30 times its allotted quota. Qualified institutional investors led the pack, subscribing 48.57 times their allocation, while non-institutional investors and retail investors also showed strong interest, subscribing 10.52 times and 2.83 times their respective portions.

The company’s anchor book, which raised around Rs 1,924 crore, saw participation from top global investors such as Capital Group, Fidelity, BlackRock, and ADIA.

Established in 1995, Bharti Hexacom offers fixed-line telephone and broadband services primarily in Rajasthan and the North East. It serves 27.1 million customers across 486 census towns through a vast distribution network of 616 distributors and 89,454 retail touchpoints.