Telecommunications Consultants India is the issuer and is offering to sell up to 100,000,000 shares. Bharti Airtel informed the exchanges in an announcement that there would be no new shares issued in the IPO, meaning that Bharti Hexacom will not receive any revenues from the share sale.
Mumbai – After receiving board permission, Bharti Airtel‘s subsidiary Bharti Hexacom filed the draft red herring prospectus (DRHP) for an initial public offering with the Securities and Exchange Board of India (Sebi) on Saturday.
As part of the IPO, Telecommunications Consultants India is offering to sell up to 100,000,000 shares.
The government-owned business Telecommunications Consultants holds a 30% share in Bharti Hexacom.
Bharti Airtel owns the remaining 70% of Bharti Hexacom.
According to a notification from Bharti Airtel to the exchanges, there won’t be any further shares issued in the IPO, meaning Bharti Hexacom won’t get any money from the share sale.
Bharti Hexacom won’t get any revenues from the share offering since there won’t be a new share issue during the IPO.
Three months prior, the Economic Times published an article citing insiders suggesting that the government might profit Rs 10,000 crore by selling its stake in the mobile telecommunications company.
The article “Bharti Airtel Arm Bharti Hexacom Files Draft Papers forIPO” can be found at https://economictimes.indiatimes.com/markets/ipos/fpos/Bharti Airtel Arm Bharti Hexacom Draft Papers forIPO/articleshow/107009829.cms.
Mobile services are provided by Bharti Hexacom in Rajasthan and the Northeast regions of India. Airtel will keep controlling most of the subsidiaries.
The government is going to divest most of its stake in the corporation by selling 10 crore shares.
The issue’s book-running lead managers are SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities.
The Indian states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura make up the northeastern telecommunication circles.
Bharti Hexacom has increased its average revenue per user (ARPU) from Rs 135 in FY21 to Rs 195 in the six months that ended in September 2023.
The corporation had 29.1 million customers overall in both circles as of September 2023.
With a diverse spectrum portfolio that includes mid-band spectrum, Bharti Hexacom is able to provide clients with 5G+ services.
Bharti Hexacom recorded revenue of Rs 3,420 crore for the six months ended in September, up from Rs 3,167 crore in the same period last year. But from Rs 195 crore to Rs 69 crore in earnings last year, it fell.
At Rs 1,126.40, parent company Bharti Airtel’s shares were up 0.1% on the National Stock Exchange.
