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Bharti Hexacom Ltd IPO
Status:
Overview
IPO date
03 Apr 2024 to 05 Apr 2024
Face value
₹ 5 per share
Price
₹ 542 to ₹570 per share
Issue Size
75,000,000 shares
(aggregating up to ₹ 4275 Cr)
(aggregating up to ₹ 4275 Cr)
Allotment Date
08 Apr 2024
Listing at
NSE
Issue type
Book Building
Sector
Objectives of Bharti Hexacom Ltd IPO
Initial public offering of 75,000,000* equity shares of face value of Rs. 5 each ("Equity Shares") of Bharti Hexacom Limited (the "Company" or the "Issuer") for cash at a price of Rs. 570 per equity share ("Offer Price") aggregating to Rs. 4275.00 crores* (the "Offer") comprising an offer for sale of 75,000,000* equity shares aggregatingto Rs. 4275.00 crores* by Telecommunications Consultants India Limited ("Selling Shareholder") (the "Offer for Sale"). The offer constituted 15.00% of our post-offer paid-up equity share capital.
The offer price is 114 times the face value of the equity shares.
Bharti Hexacom Ltd IPO Strategy
- Grow its Revenue by Focusing on Acquiring and Retaining Quality Customers.
- Expand its Network Coverage.
- Deliver Brilliant Customer Experience through an Omnichannel Approach and Extensive Use of Data Science.
- Improve its Cost Efficiencies.
About Bharti Hexacom Ltd
Bharti Hexacom Limited was incorporated as a Joint Venture Company in the year 1995 under the name Hexacom India Ltd to enter cellular services for diversifying their operations. They provided Cellular Mobile Telephony Services in the circles of North East and Rajasthan, pursuant to licenses granted by the Department of Telecommunications, Government of India, on December 12, 1995 and December 19, 1995.
The Company is a subsidiary of Bharti Airtel Ltd. It is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, which
comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. It offer services under the brand Airtel'. It offer cellular mobile, broadband, and telephone services. TCIL, a public sector undertaking firm holds 30% stake in the Company.
In December 2003, Bharti Airtel Ltd entered into an agreement with Telesystem (Mauritius) Pvt Ltd, Mauritius, a subsidiary of Telesystem International Wireless Inc, Canada, for buying their equity interest in the company for a consideration of $22.5 million.
In May 7, 2004, Bharti Airtel Ltd (formerly known as Bharti Tele-Ventures Ltd) acquired majority shareholding (67.5%) of the company a consideration of Rs 431.07 crore. In October 2004, Bharti Airtel Ltd further acquired 1% equity stake from Fouad M T Al Ghanim Trading & Cont Co Kuwait. With the acquisition of this additional 1% stake, the total holding of Bharti Airtel Ltd in the company has increased to 68.5%. In December 2004, the company changed their name from Hexacom India Ltd to Bharti Hexacom Ltd.
During the year 2004-05, the company expanded their network in the existing cities and roller-out in 174 new towns and coverage is available in 230 towns A new switch was installed and the HLR capacity was increased from 310 K to 900 K with an addition of 270 BTS. They also launched value added services such as 'Ring back tones', GPRS, MMS for enhancement of 'VAS' offerings and revenues.
During the year, the company commenced state-of-the-art call centre and initiated various programmes for customer benefit. In March 30, 2005, the company, which holds a Cellular Mobile Service Provider License, launched their commercial operations in North-East Circle.
The company migrated their Cellular Mobile Service Provider License to Unified Access Service Licence in the telecom circle of Rajasthan with effect from April 10, 2006. In September 14, 2006, Bharti Airtel Ltd acquired 43,750,000 equity shares of the company for a consideration of Rs 57.50 crore thereby increasing their stake from 68.5% to 68.89%.
During the year 2007-08, the subscriber base for the company in Rajasthan increased by 112% from 1,800,356 to 3,815,628 and in North-East Circle by 76% from 274,044 to 481,499. The subscriber base for voice services increased by 75% from 11,866 to 20,766 and for DSL services has increased by 149% from 3,659 to 9,115.
In February 2009, Bharti Airtel Ltd, the holding company acquired 1.11 per cent stake, or 2,780,306 equity shares, in Bharti Hexacom Ltd from Mobile Telecommunications Co KSC, Kuwait. With this acquisition, Bharti Airtel Ltd shareholding in the company stands higher at 70% from 68.89%.
The company and Bharti Airtel Ltd have entered into a scheme of arrangement for transfer pursuant to de-merger of North East Circle Undertaking from the company to Bharti Airtel Ltd with effect from April 1, 2005, which was approved by the board. The company is in the process of filing the approved scheme in the High Court.
In August 2009, the Government of India has finally approved state-run TCIL's (Telecommunications Consultants India) exit from the company, which is a joint venture with Bharti Airtel Ltd. TCIL decides to sell their 30% in the company to raise funds to be utilized for the purpose of expansion of the telecom.
The Company's 3G services in Jaipur, was the first launch in North India in 2011. In 2015, it launched 4G technology in Meghalaya's capital Shillong, the first in the North East circle; in 2016, the Company launched Platinum 3G services to customers. The first 4G service in Ajmer, marked the rollout of Rajasthan's first 4G services followed by launch of 4G services in Kota and Jaipur; launched 15th Company-Owned-Company-Operated retail store in Rajasthan; launched 2G and 3G services to mobile services in towns of Lumla, Nafra and Longding in Arunachal Pradesh, which was the first time that customers in these towns gained access to 3G mobile services.
In 2019, Tata Teleservices Limited and Bharti Airtel Limited was demerged into the Company through the Scheme of Arrangement implemented. The Company in 2021, launched Airtel Black. In 2023, it launched 5G services in Jaipur, Udaipur, Kota, Jodhpur, Ajmer, Alwar, Bikaner and Bhilwara in Rajasthan; launched Airtel 5G Plus services in Shillong and Meghalaya; launched 5G services in the North-East States.
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T&C*
Strengths vs Risks of Bharti Hexacom Ltd
Know the pros & cons
Strengths
Established Leadership and Large Customer Base in its area of operations.- Presence in Markets with High Growth Potential.
- Strong Parentage and Established Brand.
- Building a Future Ready Network .
- Extensive Distribution and Service Network .
- Experienced Management Team.
Risks
- We derive our revenues from providing mobile telephone services in Rajasthan and the North East circleand any unfavourable developments in such regions could adversely affect our business, results of operations and financial condition.
- There are outstanding legal proceedings involving our Promoter, in addition to our Company. Any adverse outcome in any of these proceedings may adversely affect our reputation, business, financial condition and results of operations.
- The Offer shall be undertaken under Regulation 6(2) of the SEBI ICDR Regulations.
- As of December 31, 2023, we had contingent liabilities which have not been provided for in our Restated Financial Information and could adversely affect our business, financial condition and results of operations.
- Reduction in revenue we earn for our telecom services, due to regulatory ceilings on pricing, or owing to pricing pressure, reduction in average revenue per user ("ARPU"), may have an adverse effect on our business, financial condition, results of operations and prospects.
- We have incurred significant indebtedness, and we must service this debt and comply with any lenders` covenants to avoid defaulting on our borrowings and refinancing risk. Any default may adversely affect our business and profitability.
- We require significant capital to fund our capital expenditure and if we are unable to raise additional capital, our business, financial condition and results of operations could be adversely affected.
- The average cost of acquisition of Equity Shares by the Selling Shareholder may be less than the Offer Price.
- Any change in our relationship with our Promoter, Airtel and its affiliates, may adversely affect our reputation, business, operations, financial condition and results of operations.
- We have been, and continue to be, involved in material legal proceedings.
- We will not receive any proceeds from the Offer for Sale. The Selling Shareholder will receive the net proceeds from the Offer for Sale.
- There was only one disciplinary action taken against our Promoter by the National Stock Exchange of India Limited in the past.
- Our Statutory Auditors have included certain remarks in connection with the Companies (Auditor's Report) Order, 2020/ Companies (Auditor's Report) Order, 2016.
- Our non-convertible debentures ("NCDs") are listed on the NSE and we are subject to rules and
regulations with respect to such listed NCDs. Additionally, as a `high value debt listed entity', we are subject to additional compliances under the SEBI Listing Regulations. If we fail to comply with such rules and regulations, we may be subject to certain penal actions, which may have an adverse effect on our business, results of operations, financial condition and cash flows.
- We have incurred losses in the past and we may not achieve or sustain profitability in the future.
- A large part of our passive infrastructure is not owned by us and we rely on third party providers for such infrastructure. We cannot assure you that such passive infrastructure will be adequately maintained or that our strategy for the continued upgrade or rollout of our network will be implemented in a timely manner or on a cost-effective basis.
- We rely on sophisticated billing, credit control and customer verification systems, any failure of which could lead to a loss of income and customers.
- The Offer Price, market capitalization to revenue from operations multiple and price to earnings ratio based on the Offer Price of our Company, may not be indicative of the market price of the Equity Shares on listing.
- We rely significantly on our information technology systems for our business and any inadequacy or security breach in such systems could adversely affect our business, financial condition and results of operations.
- If we do not continue to provide telecommunications or related services that are technologically up to date or keep up with changing consumer preferences, we may not remain competitive, and our business, financial condition and results of operations may be adversely affected.
- We are exposed to certain risks in respect of the development, expansion and maintenance of our mobile telecommunications networks. Failure to address these risks and control our operating costs may have an adverse effect on our business and profitability.
- Churn rate in the mobile telecommunications industry in India is high (Source: CRISIL Report), and we cannot assure you that we will be able to retain all our existing customers or that we will be successful in customer additions, which may have an adverse effect on our business, financial condition and results of operations.
- We face intense competition that may reduce our market share and lower our profits.
- Our ability to grow our business and our number of customers is dependent on the quality and quantity of spectrum owned by us.
- Poor quality of network, including redundancies and disaster recoveries, can adversely affect our business, financial condition and results of operations.
- We are dependent on a limited number of vendors to supply critical network and other equipment and
services.
- In the regulated telecommunications market, our licenses and spectrum allocations are subject to terms and conditions, ongoing review and varying interpretations, each of which may result in modification, suspension, early termination, expiry on completion of the term or additional payments, which could adversely affect our business, financial condition and results of operations.
- We are dependent on our Key Managerial Personnel, Senior Management and our employees, and the loss
of, or our inability to hire, retain, train, and motivate qualified personnel could adversely affect our business, financial condition and results of operations.
- Adverse change in credit ratings assigned to us may affect our ability to raise funds for future capital requirements.
- Our business is vulnerable to fluctuation in interest rates.
- Our Promoter exercises significant control over our Company and will continue to do so after completion of the Offer, which may limit your ability to influence the outcome of matters submitted for approval.
- We may be unable to adequately protect intellectual property that we use and may be subject to risks of infringement claims.
- Non-receipt of payment from our customers may adversely affect our business, financial condition and results of operations.
- Environmental and health regulations may impose additional costs and may affect our business, financial condition and results of operations. In addition, concerns about health risks to customers stemming from mobile telecommunications equipment may reduce the demand for our services.
- We may be unable to protect our rights to the land on which our active network infrastructure is placed.
- Our Promoter may have interest in entities which are in businesses similar to ours. We may also offer services which are similar to those offered by our Promoter.
- We have used information from the CRISIL Report, which we have commissioned and paid for purposes of confirming our understanding of the industry exclusively in connection with the Offer and any reliance on such information is subject to inherent risk.
- Certain statutory and regulatory licenses and approvals are required for conducting our business and any failure or omission to obtain, maintain or renew these licenses and approvals in a timely manner, or at all, could adversely affect our business and results of operations.
- We do not own our retail outlets or small format stores. We also do not own the property on which our Registered Office and Corporate Office is situated. Any termination or failure by us to renew the lease and license agreements in connection with these properties, could adversely affect our business and results of operations. Moreover, many of the lease and license agreements entered into by us may not be duly registered or adequately stamped.
- Negative publicity could damage our reputation and adversely impact our business, financial condition and results of operations.
- Our business depends on the delivery of an adequate and uninterrupted supply of electrical power and fuel at a reasonable cost.
- Significant differences exist between Ind AS used to prepare our financial information and other
accounting principles, such as U.S. GAAP and IFRS, which investors may be more familiar with and may
consider material to their assessment of our financial condition.
- Our insurance coverage may not be sufficient or may not adequately protect us against all material hazards, which may adversely affect our business, financial condition and results of operations.
- We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the
telecommunications industry, and therefore may not be comparable with financial or industry related
statistical information of similar nomenclature computed and presented by other companies.
- We may enter into related party transactions in the ordinary course of our business and we cannot assure you that such transactions will not have an adverse effect on our results of operation and financial condition.
- A failure of our internal controls over financial reporting may have an adverse effect on our business, results of operations, cash flows and financial condition.
- Our ability to pay dividends in the future will depend on our earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of our financing arrangements.
- We have availed short term unsecured working capital loans from scheduled banks, which can be recalled by lenders at any time.
- We are unable to trace some of our historical corporate records including minutes of the Shareholders meetings and corresponding form filings. We cannot assure you that no legal proceedings or regulatory actions will be initiated against our Company in the future in relation to these matters, which may impact
our financial condition and reputation.
- Any failure to comply with sanctions administered by the United States or other governments could
adversely affect our business and reputation.
Bharti Hexacom Ltd Peer Comparison
Understand the company’s industry standing
Bharti Hexacom Ltd
Bharti Airtel Ltd
Vodafone Idea Ltd
Face Value
5
5
10
Standalone / Consolidated
Standalone
Consolidated
Consolidated
Total Income Rs. Cr.
6579
139144.8
42177.2
EPS-Basis
10.98
14.8
-8.43
EPS-Diluted
10.98
14.57
-8.43
NAV Per Share
84.19
136.72
---
P/E-Basic EPS
---
82.16
-1.63
P/E-Diluted EPS
---
---
---
RONW(%)
13.83
15.84
---
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Bharti Hexacom Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 03 Apr 2024 & closes on 05 Apr 2024.
Bharti Hexacom Limited was incorporated as a Joint Venture Company in the year 1995 under the name Hexacom India Ltd to enter cellular services for diversifying their operations. They provided Cellular Mobile Telephony Services in the circles of North East and Rajasthan, pursuant to licenses granted by the Department of Telecommunications, Government of India, on December 12, 1995 and December 19, 1995.
The Company is a subsidiary of Bharti Airtel Ltd. It is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, which
comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. It offer services under the brand Airtel'. It offer cellular mobile, broadband, and telephone services. TCIL, a public sector undertaking firm holds 30% stake in the Company.
In December 2003, Bharti Airtel Ltd entered into an agreement with Telesystem (Mauritius) Pvt Ltd, Mauritius, a subsidiary of Telesystem International Wireless Inc, Canada, for buying their equity interest in the company for a consideration of $22.5 million.
In May 7, 2004, Bharti Airtel Ltd (formerly known as Bharti Tele-Ventures Ltd) acquired majority shareholding (67.5%) of the company a consideration of Rs 431.07 crore. In October 2004, Bharti Airtel Ltd further acquired 1% equity stake from Fouad M T Al Ghanim Trading & Cont Co Kuwait. With the acquisition of this additional 1% stake, the total holding of Bharti Airtel Ltd in the company has increased to 68.5%. In December 2004, the company changed their name from Hexacom India Ltd to Bharti Hexacom Ltd.
During the year 2004-05, the company expanded their network in the existing cities and roller-out in 174 new towns and coverage is available in 230 towns A new switch was installed and the HLR capacity was increased from 310 K to 900 K with an addition of 270 BTS. They also launched value added services such as 'Ring back tones', GPRS, MMS for enhancement of 'VAS' offerings and revenues.
During the year, the company commenced state-of-the-art call centre and initiated various programmes for customer benefit. In March 30, 2005, the company, which holds a Cellular Mobile Service Provider License, launched their commercial operations in North-East Circle.
The company migrated their Cellular Mobile Service Provider License to Unified Access Service Licence in the telecom circle of Rajasthan with effect from April 10, 2006. In September 14, 2006, Bharti Airtel Ltd acquired 43,750,000 equity shares of the company for a consideration of Rs 57.50 crore thereby increasing their stake from 68.5% to 68.89%.
During the year 2007-08, the subscriber base for the company in Rajasthan increased by 112% from 1,800,356 to 3,815,628 and in North-East Circle by 76% from 274,044 to 481,499. The subscriber base for voice services increased by 75% from 11,866 to 20,766 and for DSL services has increased by 149% from 3,659 to 9,115.
In February 2009, Bharti Airtel Ltd, the holding company acquired 1.11 per cent stake, or 2,780,306 equity shares, in Bharti Hexacom Ltd from Mobile Telecommunications Co KSC, Kuwait. With this acquisition, Bharti Airtel Ltd shareholding in the company stands higher at 70% from 68.89%.
The company and Bharti Airtel Ltd have entered into a scheme of arrangement for transfer pursuant to de-merger of North East Circle Undertaking from the company to Bharti Airtel Ltd with effect from April 1, 2005, which was approved by the board. The company is in the process of filing the approved scheme in the High Court.
In August 2009, the Government of India has finally approved state-run TCIL's (Telecommunications Consultants India) exit from the company, which is a joint venture with Bharti Airtel Ltd. TCIL decides to sell their 30% in the company to raise funds to be utilized for the purpose of expansion of the telecom.
The Company's 3G services in Jaipur, was the first launch in North India in 2011. In 2015, it launched 4G technology in Meghalaya's capital Shillong, the first in the North East circle; in 2016, the Company launched Platinum 3G services to customers. The first 4G service in Ajmer, marked the rollout of Rajasthan's first 4G services followed by launch of 4G services in Kota and Jaipur; launched 15th Company-Owned-Company-Operated retail store in Rajasthan; launched 2G and 3G services to mobile services in towns of Lumla, Nafra and Longding in Arunachal Pradesh, which was the first time that customers in these towns gained access to 3G mobile services.
In 2019, Tata Teleservices Limited and Bharti Airtel Limited was demerged into the Company through the Scheme of Arrangement implemented. The Company in 2021, launched Airtel Black. In 2023, it launched 5G services in Jaipur, Udaipur, Kota, Jodhpur, Ajmer, Alwar, Bikaner and Bhilwara in Rajasthan; launched Airtel 5G Plus services in Shillong and Meghalaya; launched 5G services in the North-East States.
Bharti Hexacom Ltd IPO will close on 05 Apr 2024.
- Established Leadership and Large Customer Base in its area of operations.
- Presence in Markets with High Growth Potential.
- Strong Parentage and Established Brand.
- Building a Future Ready Network .
- Extensive Distribution and Service Network .
- Experienced Management Team.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Bharti Airtel Ltd | 350000000 | 70 | 350000000 | 70 |
- We derive our revenues from providing mobile telephone services in Rajasthan and the North East circleand any unfavourable developments in such regions could adversely affect our business, results of operations and financial condition.
- There are outstanding legal proceedings involving our Promoter, in addition to our Company. Any adverse outcome in any of these proceedings may adversely affect our reputation, business, financial condition and results of operations.
- The Offer shall be undertaken under Regulation 6(2) of the SEBI ICDR Regulations.
- As of December 31, 2023, we had contingent liabilities which have not been provided for in our Restated Financial Information and could adversely affect our business, financial condition and results of operations.
- Reduction in revenue we earn for our telecom services, due to regulatory ceilings on pricing, or owing to pricing pressure, reduction in average revenue per user ("ARPU"), may have an adverse effect on our business, financial condition, results of operations and prospects.
- We have incurred significant indebtedness, and we must service this debt and comply with any lenders` covenants to avoid defaulting on our borrowings and refinancing risk. Any default may adversely affect our business and profitability.
- We require significant capital to fund our capital expenditure and if we are unable to raise additional capital, our business, financial condition and results of operations could be adversely affected.
- The average cost of acquisition of Equity Shares by the Selling Shareholder may be less than the Offer Price.
- Any change in our relationship with our Promoter, Airtel and its affiliates, may adversely affect our reputation, business, operations, financial condition and results of operations.
- We have been, and continue to be, involved in material legal proceedings.
- We will not receive any proceeds from the Offer for Sale. The Selling Shareholder will receive the net proceeds from the Offer for Sale.
- There was only one disciplinary action taken against our Promoter by the National Stock Exchange of India Limited in the past.
- Our Statutory Auditors have included certain remarks in connection with the Companies (Auditor's Report) Order, 2020/ Companies (Auditor's Report) Order, 2016.
- Our non-convertible debentures ("NCDs") are listed on the NSE and we are subject to rules and regulations with respect to such listed NCDs. Additionally, as a `high value debt listed entity', we are subject to additional compliances under the SEBI Listing Regulations. If we fail to comply with such rules and regulations, we may be subject to certain penal actions, which may have an adverse effect on our business, results of operations, financial condition and cash flows.
- We have incurred losses in the past and we may not achieve or sustain profitability in the future.
- A large part of our passive infrastructure is not owned by us and we rely on third party providers for such infrastructure. We cannot assure you that such passive infrastructure will be adequately maintained or that our strategy for the continued upgrade or rollout of our network will be implemented in a timely manner or on a cost-effective basis.
- We rely on sophisticated billing, credit control and customer verification systems, any failure of which could lead to a loss of income and customers.
- The Offer Price, market capitalization to revenue from operations multiple and price to earnings ratio based on the Offer Price of our Company, may not be indicative of the market price of the Equity Shares on listing.
- We rely significantly on our information technology systems for our business and any inadequacy or security breach in such systems could adversely affect our business, financial condition and results of operations.
- If we do not continue to provide telecommunications or related services that are technologically up to date or keep up with changing consumer preferences, we may not remain competitive, and our business, financial condition and results of operations may be adversely affected.
- We are exposed to certain risks in respect of the development, expansion and maintenance of our mobile telecommunications networks. Failure to address these risks and control our operating costs may have an adverse effect on our business and profitability.
- Churn rate in the mobile telecommunications industry in India is high (Source: CRISIL Report), and we cannot assure you that we will be able to retain all our existing customers or that we will be successful in customer additions, which may have an adverse effect on our business, financial condition and results of operations.
- We face intense competition that may reduce our market share and lower our profits.
- Our ability to grow our business and our number of customers is dependent on the quality and quantity of spectrum owned by us.
- Poor quality of network, including redundancies and disaster recoveries, can adversely affect our business, financial condition and results of operations.
- We are dependent on a limited number of vendors to supply critical network and other equipment and services.
- In the regulated telecommunications market, our licenses and spectrum allocations are subject to terms and conditions, ongoing review and varying interpretations, each of which may result in modification, suspension, early termination, expiry on completion of the term or additional payments, which could adversely affect our business, financial condition and results of operations.
- We are dependent on our Key Managerial Personnel, Senior Management and our employees, and the loss of, or our inability to hire, retain, train, and motivate qualified personnel could adversely affect our business, financial condition and results of operations.
- Adverse change in credit ratings assigned to us may affect our ability to raise funds for future capital requirements.
- Our business is vulnerable to fluctuation in interest rates.
- Our Promoter exercises significant control over our Company and will continue to do so after completion of the Offer, which may limit your ability to influence the outcome of matters submitted for approval.
- We may be unable to adequately protect intellectual property that we use and may be subject to risks of infringement claims.
- Non-receipt of payment from our customers may adversely affect our business, financial condition and results of operations.
- Environmental and health regulations may impose additional costs and may affect our business, financial condition and results of operations. In addition, concerns about health risks to customers stemming from mobile telecommunications equipment may reduce the demand for our services.
- We may be unable to protect our rights to the land on which our active network infrastructure is placed.
- Our Promoter may have interest in entities which are in businesses similar to ours. We may also offer services which are similar to those offered by our Promoter.
- We have used information from the CRISIL Report, which we have commissioned and paid for purposes of confirming our understanding of the industry exclusively in connection with the Offer and any reliance on such information is subject to inherent risk.
- Certain statutory and regulatory licenses and approvals are required for conducting our business and any failure or omission to obtain, maintain or renew these licenses and approvals in a timely manner, or at all, could adversely affect our business and results of operations.
- We do not own our retail outlets or small format stores. We also do not own the property on which our Registered Office and Corporate Office is situated. Any termination or failure by us to renew the lease and license agreements in connection with these properties, could adversely affect our business and results of operations. Moreover, many of the lease and license agreements entered into by us may not be duly registered or adequately stamped.
- Negative publicity could damage our reputation and adversely impact our business, financial condition and results of operations.
- Our business depends on the delivery of an adequate and uninterrupted supply of electrical power and fuel at a reasonable cost.
- Significant differences exist between Ind AS used to prepare our financial information and other accounting principles, such as U.S. GAAP and IFRS, which investors may be more familiar with and may consider material to their assessment of our financial condition.
- Our insurance coverage may not be sufficient or may not adequately protect us against all material hazards, which may adversely affect our business, financial condition and results of operations.
- We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the telecommunications industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- We may enter into related party transactions in the ordinary course of our business and we cannot assure you that such transactions will not have an adverse effect on our results of operation and financial condition.
- A failure of our internal controls over financial reporting may have an adverse effect on our business, results of operations, cash flows and financial condition.
- Our ability to pay dividends in the future will depend on our earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of our financing arrangements.
- We have availed short term unsecured working capital loans from scheduled banks, which can be recalled by lenders at any time.
- We are unable to trace some of our historical corporate records including minutes of the Shareholders meetings and corresponding form filings. We cannot assure you that no legal proceedings or regulatory actions will be initiated against our Company in the future in relation to these matters, which may impact our financial condition and reputation.
- Any failure to comply with sanctions administered by the United States or other governments could adversely affect our business and reputation.
The Issue type of Bharti Hexacom Ltd is Book Building.
The minimum application for shares of Bharti Hexacom Ltd is 26.
The total shares issue of Bharti Hexacom Ltd is 75000000.
Initial public offering of 75,000,000* equity shares of face value of Rs. 5 each ("Equity Shares") of Bharti Hexacom Limited (the "Company" or the "Issuer") for cash at a price of Rs. 570 per equity share ("Offer Price") aggregating to Rs. 4275.00 crores* (the "Offer") comprising an offer for sale of 75,000,000* equity shares aggregatingto Rs. 4275.00 crores* by Telecommunications Consultants India Limited ("Selling Shareholder") (the "Offer for Sale"). The offer constituted 15.00% of our post-offer paid-up equity share capital.
The offer price is 114 times the face value of the equity shares.