Bharti Hexacom IPO: Exciting Debut Signals on Dalal Street
Credit: Goodreturns News
09.04.2024: New Delhi-based Bharti Hexacom is gearing up for its Dalal Street debut this Wednesday, and early signals from the grey market suggest an optimistic start for investors. The company’s IPO was priced between Rs 542-570 per share, with a lot size of 26 equity shares, raising a total of Rs 4,275 crore.
Grey market trends indicate a significant listing premium for Bharti Hexacom. Just before its market debut, the grey market premium for the stock was in the range of Rs 95-100, indicating a potential listing pop of 17-18% above the issue price. This surge in premium from earlier levels reflects growing investor confidence and interest in the company.
Market experts foresee a strong listing performance for Bharti Hexacom, potentially delivering a double-digit premium. However, they also advise investors to consider the company’s robust business model, strong parentage, and solid financials for long-term investment prospects.
Prashanth Tapse, Senior VP Research at Mehta Equities, attributes the IPO’s success to investor enthusiasm for midcap telecommunications growth stories. He predicts a healthy initial listing premium of 10-12%, aligning with the positive market sentiment and strong subscription demand.
The symbiotic relationship between Bharti Hexacom and Airtel, leveraging Airtel’s brand strength and diverse offerings, is seen as a key driver for sustained market growth. Tapse recommends a ‘hold’ strategy for allotted investors, emphasizing a long-term perspective.
Bharti Hexacom’s IPO, solely through an offer-for-sale of up to 7,50,00,000 equity shares by Telecommunications Consultants India, garnered substantial interest, with an overall subscription of 29.88 times. While institutional and non-institutional quotas saw robust demand, the retail investor segment was subscribed 2.83 times.
With extensive market coverage and a focus on prudent capital allocation and improving returns, Bharti Hexacom stands poised for a promising market debut. Investors who have received allotments are advised to hold shares from a medium to long-term perspective, suggests Prathamesh Masdekar, Research Analyst at StoxBox.
Founded in 1995, Bharti Hexacom offers fixed-line telephone and broadband services primarily in Rajasthan and North East telecom circles, serving states like Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
The book running lead managers for the Bharti Hexacom IPO are Axis Capital, BoB Capital Markets, SBI Capital Markets, ICICI Securities, and IIFL Securities, with Kfin Technologies as the registrar for the issue.