Bharti Hexacom IPO Oversubscribed 29x, Allotment Out Today

8 Apr 2024 , 09:47 AM

Bharti Hexacom, a subsidiary of Bharti Airtel, recently concluded its initial public offering (IPO) valued at approximately ₹4,275 Crore with a staggering subscription rate of 29.88 times as of Friday, April 5. The shares of Bharti Hexacom are slated to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) tentatively on Monday, April 8, pending the finalization of share allotments scheduled for April 12.

Investors who participated in the Bharti Hexacom IPO can conveniently check the status of their applications through two online platforms: the BSE website and the website of the registrar, KFin Technologies Limited.

Bharti Hexacom is renowned for providing consumer mobile services, fixed-line telephone, and broadband services under the trusted Airtel brand to customers located in Rajasthan and the North East telecommunication circles in India. Despite its substantial presence, the company faced a notable setback in its financial performance during the fiscal year 2022-23, reporting a significant 67.2% year-on-year decline in net profit, which amounted to ₹549.2 Crore. This decline can be primarily attributed to a higher base established in the preceding year, marked by exceptional gains amounting to ₹1,951.1 Crore.

Currently, India’s telecommunications landscape is primarily dominated by four pan-India service providers: Reliance Jio, Bharti Airtel, Vodafone India, and BSNL. Notably, during the first three quarters of the fiscal year 2023, the top two players, Jio and Airtel, collectively captured approximately 80% of the market in terms of revenue and 72% in terms of subscriber base. Conversely, Vodafone India Limited (VIL) has faced ongoing challenges, resulting in a continuous decline in its market position since the fiscal year 2018 due to financial constraints.