Bharti Hexacom IPO oversubscribed 30 times on final bidding day

New Delhi: Bharti Hexacom's initial public offering witnessed an overwhelming investor response, with the IPO subscribed 29.88 times on the final day of bidding on Friday.

This marks the first public issue of the financial year 2024-25. The IPO received bids for 1,23,24,83,460 shares against the 4,12,50,000 shares on offer, as per NSE data. The category for Qualified Institutional Buyers (QIBs) saw 48.57 times subscriptions, while the non-institutional investors' portion was subscribed 10.52 times, and the quota for Retail Individual Investors (RIIs) was subscribed 2.83 times.

Earlier on Tuesday, Bharti Airtel's subsidiary Bharti Hexacom had raised about Rs 1,924 crore from anchor investors. The price band for the IPO was fixed at Rs 542-570 per share. The IPO, amounting to Rs 4,275 crore, was entirely an offer for sale (OFS) of 7.5 crore equity shares, representing a 15 per cent stake by Telecommunications Consultants India Ltd, with no fresh issue component. Bharti Hexacom will not receive any proceeds from the IPO.

Currently, promoter Bharti Airtel holds a 70 per cent stake in Bharti Hexacom, while the remaining 30 per cent is owned by Telecommunications Consultants India. Bharti Group's last IPO was that of Bharti Infratel, now known as Indus Towers, in 2012. Bharti Hexacom offers telecommunication services in Rajasthan and the Northeast.

At the upper end of the price band, the IPO size stands at Rs 4,275 crore. The issue size has been reserved with 75 per cent for Qualified Institutional Buyers (QIBs), 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors. Bharti Hexacom filed its preliminary IPO papers with Sebi on January 20 and received approval from the market watchdog on March 11 to proceed with the maiden public issue.

SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are the book-running lead managers of the public issue.