Bharti Hexacom is a Mainboard IPO with a book-built issue of Rs. 4275 crores, with OFS of 7.5 crore shares. The IPO will open from 3rd April 2024 to 5th April 2024, allotment is expected to be done on 8th April, and it will list on BSE and NSE on 12th April 2024. The price band is ₹542 to ₹570 per share, with a minimum lot size of 26 shares, and minimum investment amount of ₹14,820. The book running lead manager is SBI Capital Markets, Axis Capital, Bob Capital Markets, ICICI Securities and IIFL Securities. Kfin Technologies is the registrar for the issue.The entire issue is for offer for sale by the selling shareholder. To derive the benefits of listing on the stock exchanges.

Bharti Hexacom, incorporated in 1995, offers consumer mobiles services, fixed telephone and broadband services in Rajasthan and Northeast telecom circles in India. As on 9MFY24, the ARPU (Average Revenue per User) stood at Rs 197 and has an approx. of 27.1mn customers across both of its circles. The company provides its services under the brand “Airtel”. As on 9MFY24, the company’s revenue market share for the Rajasthan circle stood at 40.4% while for the Northeast circle was 52.7%. 

• Strong leadership and sizable customers base in the Rajasthan and North-East circles. The company holds no.1 position in the Northeast circle while stood close to 2nd position in the Rajasthan circle as on 9MFY24.
• Backed by strong parentage and renowned brand of Airtel. The company derives significant synergies from their relationship with promoter, helps in maintaining competitive advantage, better pricing from vendors and higher efficiency due to established brand and scale.
•  Widespread distribution and service network comprising 616 distributors, 51 retail outlets, and 24 smaller formats.
• Operates in markets with high growth potential, where investments in network infrastructure is expected to drive improvements in tele density and rural smartphone adoption. 

• The following points should be kept in mind:
• A significant portion of its revenue is derived from mobile services, contributing 97% of revenue as on 9MFY24.
• Any decline in telecom tariffs may affect the growth of the business.
• An evolving competitive landscape in the telecom industry and higher-than-expected competitive intensity in any business segment can impact their ARPU.