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Saturday, May 25, 2024

India’s Bharti Hexacom IPO garners bids exceeding $8 billion

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In Short:

Indian telecom operator Bharti Hexacom received bids worth $8.43 billion in its IPO, exceeding its offer size. Investors bid for 1.23 billion shares, 29.88 times more than offered. The company, owned 70% by Bharti Airtel, will debut on April 12. India has seen $2.31 billion raised through IPOs in 2024. Government-owned entity Telecom Consultants India offered to sell shares representing half of its stake in Bharti Hexacom.

Indian Telecom Operator Bharti Hexacom Receives Bids Worth $8.43 Billion in IPO

Indian telecom operator Bharti Hexacom received bids worth 702.51 billion rupees ($8.43 billion) in its initial public offering, outpacing its offer size of 42.75 billion rupees, exchange data showed on Friday.

Bids Exceed Offer Size

Investors bid for 1.23 billion shares at a price range of 542 to 570 rupees per share, which was 29.88 times more than the 41.2 million shares offered, data from the National Stock Exchange of India showed.

“Looking at the demand for the IPO, expecting Hexacom to list at a 15% premium is not expecting too much,” said Arun Kejriwal, founder of Kejriwal Research and Investment Services.

Market Debut Set for April 12

The company, 70% owned by India’s No. 2 telecom operator Bharti Airtel, is set for its market debut on April 12.

India has seen 64 companies raise $2.31 billion cumulatively through IPOs so far in 2024, compared with $170.6 million from 42 offerings in the same period last year, according to LSEG data.

Bankers expect the momentum to persist amid rapid economic growth and expectations of political stability as the general elections start later this month.

Details of the Offering

Government-owned entity Telecommunications Consultants India offered to sell 75 million shares, representing half of its 30% stake in Bharti Hexacom. It did not issue fresh shares in the IPO.

Bharti Hexacom offers consumer mobile services, fixed-line telephone, and broadband services under the brand “Airtel” in the northwestern state of Rajasthan and some parts of northeastern India.

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