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Bharti Hexacom raises Rs 1,924 crore from anchor investors before IPO

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In Short:

Bharti Hexacom, a subsidiary of Bharti Airtel, has raised about Rs 1,924 crore from anchor investors before its IPO. The telecom company allotted shares to 97 funds at Rs 570 each, totaling Rs 1,923.75 crore. The IPO will be open for public subscription from April 3 to April 5, with a price band of Rs 542 to Rs 570 per share. The offering is entirely an offer for sale (OFS) with no fresh issue component.

New Delhi: Bharti Airtel’s subsidiary, Bharti Hexacom, has successfully raised approximately Rs 1,924 crore from anchor investors a day prior to the opening of its initial public offering for public subscription. This marks the first public offering in the fiscal year 2024-25.

Anchor Investors Contribution

The telecom operator’s subsidiary has allocated 3.37 crore equity shares to 97 funds at Rs 570 per share, as disclosed in a circular published on the BSE’s website. The total investment from anchor investors amounts to Rs 1,923.75 crore at this price.

Key anchor investors include Small Cap World Fund Inc, BlackRock, Fidelity Funds, Wellington Management, Abu Dhabi Investment Authority, Schroder, Aberdeen, and Morgan Stanley Asia (Singapore) Pte.

An additional 22 mutual funds have been allotted 1.39 crore shares, constituting 41% of the total allocation. These mutual funds comprise entities like SBI Mutual Fund, HDFC MF, ICICI Prudential MF, Aditya Birla Sun Life MF, Sundaram MF, Axis MF, Kotak MF, and UTI MF.

Upcoming IPO Details

The IPO is priced between Rs 542 to Rs 570 per share and is scheduled to be open for public subscription from April 3 to April 5. It is a Rs 4,275-crore offer for sale (OFS) consisting of 7.5 crore equity shares, representing a 15% stake divestment by Telecommunications Consultants India Ltd, with no fresh issue component.

Given that it is an OFS, Bharti Hexacom will not receive any funds from the IPO process. Currently, Bharti Airtel owns 70% of the stake, with the remaining 30% held by Telecommunications Consultants India.

Bharti Hexacom offers telecommunication services in Rajasthan and Northeast regions. The IPO size at the upper end of the price band would be Rs 4,275 crore, with 75% of the issue size reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors.

Regulatory Approvals and Managers

The company filed its preliminary IPO papers with Sebi on January 20 and received approval on March 11 to proceed with the maiden public issue. The book running lead managers for the public issue include SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities.

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