Dive into the Bharti Hexacom Limited IPO Details Today!

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Bharti Hexacom Limited – IPO DETAILS – Issue Date, Lot Size, Issue Size, Allotment Date

IPO Date	Apr 03, 2024, to Apr 05, 2024
Price Band	₹542 to ₹570 per share
Lot Size	26 Shares
Issue Size	₹4,275.00 Cr.
Allotment Date	08 April 2024
Listing Date	12 April 2024

Bharti Hexacom Limited Company Overview.

Established in 1995, the company was originally known as Hexacom India Ltd. In 2004, it underwent acquisition by Bharti Airtel and was subsequently rebranded as Bharti Hexacom Ltd. As per the current RHP filing, Bharti Airtel holds a 70% stake in the company, while the remaining 30% is owned by the Government of India through Telecommunications Consultants India Ltd. (TCIL). Specializing in telecom and IT fields, the company functions as an engineering and consultancy firm, extending its expertise to developing nations worldwide.

Today, Bharti Hexacom delivers communication services under the Airtel brand, offering enhanced customer engagement and tailored family plans as part of the Airtel Black proposition. The company operates a robust network infrastructure comprising a combination of owned and leased assets. As of December 31, 2023, it manages 24,874 network towers, of which 5,092 are owned. Additionally, it boasts a spectrum portfolio featuring mid-band spectrum architecture across the 1800/2100/2300 MHz bands. These towers are constructed on a non-standalone basis, allowing for a shared architecture catering to both 4G and 5G networks. This approach results in reduced ownership costs and facilitates faster infrastructure deployment across the nation.

Bharti Hexacom Limited’s Objective of the IPO

Here are a few quick reasons why the company is going public:

The entire issue will be conducted as an Offer for Sale, enabling promoters to divest their stake at a favourable valuation and exit their investment.

Company Financials

Period Ended	Total Assets	Total Revenue	Profit After Tax	Net Worth	Reserves and Surplus	Borrowing
31-Mar-21	15,003.50	4,704.30	-1,033.90	1,898.70	1,736.00	5,975.20
31-Mar-22	16,674.30	5,494.00	1,674.60	3,573.20	3,410.50	7,198.30
31-Mar-23	18,252.90	6,719.20	549.20	3,972.20	3,959.50	6,269.30

Key Performance Indicator

Market Cap. (Cr.)	28,500	EPS (Rs)	7.51
RoNW	7.08	Debt/Equity	1.41
P/BV	6.45	P/E	75.85

Pros

Hexacom boasts an established leadership position and a large customer base primarily concentrated in Rajasthan and other northeastern states of India. As of December 31, 2023, the company has a presence in 486 census towns, serving a combined total of 2.7 crore customers.

Furthermore, its presence in regions such as Rajasthan and the northeastern states, which exhibit relatively low teledensity rates (79.5% and 79.7% respectively), presents significant growth opportunities. Notably, rural areas in Rajasthan have a teledensity as low as 57%, underscoring the immense potential for Hexacom to enhance connectivity in these underserved areas.

Benefiting from its strong parentage under Airtel, a global communications provider with a customer base of 50 crore across 17 countries in South Asia and Africa, Hexacom enjoys an established brand presence and strategic guidance from its parent company. This affiliation lends credibility and stature to Hexacom’s business operations.

Hexacom is committed to building a future-ready network infrastructure. Airtel, as of December 31, 2023, boasts an extensive network comprising 9 lakh mobile base stations, submarine cables, and fiber connectivity nationwide. This robust infrastructure facilitated Airtel’s customers in consuming a substantial volume of data, amounting to 3.7 billion gigabytes, and spending 2.6 lakh minutes during the year.

Cons

The company’s revenue is solely dependent on the Rajasthan and northeastern regions of India. Any adverse developments in these markets could significantly impact its business operations and financial performance.

While Hexacom has witnessed consistent revenue growth, its earnings have displayed inconsistency. Exceptional gains or losses in fiscal years 2021 and 2022 have distorted the normalized earnings figures, potentially impacting the assessment of its financial stability and performance.

Hexacom’s failure to comply with SEBI’s Issue of Capital and Disclosure requirements norms due to reported losses in FY21 poses regulatory compliance risks. Non-compliance with regulatory standards could lead to penalties, legal repercussions, and loss of investor confidence.