Bharti Airtel arm Bharti Hexacom on Friday has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to for an Initial Public Offering (IPO).
The IPO will be completely offer-for-sale (OFS) of up to 10 crore equity shares by its existing shareholders.
“We wish to inform you that board of directors of the company at its meeting held on Friday, January 19, 2024 have approved the IPO of equity shares of face value ₹5 each comprising of an OFS of up to 100,000,000 equity shares (representing 20% of the paid-up share capital of the company) by Telecommunications Consultants India Ltd, subject to such variation as permitted under applicable law,” the company said in an exchange filing.
In addition, the company stated in its exchange filing that the IPO would not include any any fresh issuance of equity shares and will be carried out subject to the necessary approvals and market conditions. The company will not get any proceeds from the IPO because it is an OFS.
The government-owned company Telecommunications Consultants holds a 30% stake in Bharti Hexacom. Bharti Airtel has the remaining 70% of Bharti Hexacom.
The IPO’s book-running lead managers are SBI Capital Markets Ltd, Axis Capital Ltd, BOB Capital Markets Ltd, ICICI Securities Ltd, and IIFL Securities Ltd.
As per the DRHP, the company’s DRHP, its listed peers are Bharti Airtel (with a P/E of 75.18) and Vodafone Idea Ltd.
Bharti Hexacom reported revenue of ₹3,420 crore for the six months ending in September, up from ₹3,167 crore in the same period previous year. Profit, however, decreased from ₹195 crore to ₹69 crore in the previous year.
On Saturday’s trading session, Bharti Airtel share price closed flat at ₹1,125 apiece on BSE.
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