Bharti Hexacom IPO Day 3: GMP, subscription status to review. Should you apply to IPO of ‘Airtel’ brand owner company?

Bharti Hexacom IPO Day 3: The initial public offering (IPO) Bharti Hexacom Limited opened for subscribers on 3rd April 2024 and will remain open till 5th April 2024. This means the public issue will remain open till Friday this week. As per the Bharti Hexacom IPO subscription status, the public issue worth ₹4,275 crore has received positive response from the primary market investors. Meanwhile, the grey market is dropping positive sentiments regarding Bharti Hexacom IPO. As per the stock market observers, shares of Bharti Hexacom Limited are available at a premium of ₹62 in the grey market today.

Bharti Hexacom IPO GMP today

According to market observers, Bharti Hexacom IPO GMP (grey market premium) today is ₹62, which is nearly ₹3 higher from its Thursday GMP of ₹59. Market observers said that Bharti Hexacom IPO GMP today is almost steady as market is trading range-bound ahead of the RBI MPC meeting outcome expected on Friday this week. They said that range-bound bias on the secondary market and lukewarm response to the public issue on the first day of subscription could be the possible reason for subdued grey market sentiments.

Bharti Hexacom IPO subscription status

By the end of the second day, the public issue has been subscribed 1.12 times whereas its retail portion has been booked 1.15 times. The NII segment of the initial public offer has been subscribed 1.71 times while the QIB portion of the public offer was booked 0.82 per cent, according to BSE data.

Bharti Hexacom IPO review

Bharti Hexacom IPO raises ₹1,923.75 crore from anchor investors. The telecom service provider company's revnue grew by nearly 22 percent YoY in FY23. However, company's PAT (Profit After Tax) dropped over 67 percent YoY in FY23. The company's assets at the end of FY23 stood at around ₹18,250 crore, which grew up to ₹19,600 crore in first nine months of the financial year 2023-24. By end of the first nine months, company's net worth stood around ₹39,780 crore that stood at ₹nearly ₹3,972 crore in FY23.

Giving a 'subscribe' tag to the Airtel brand owner company's IPO, the Marwadi Shares and Finance Limited said, "Bharti Hexacom Ltd 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."

SMIFS has also recommended applying to the book build issue saying, "The company’s revenue from mobile services reflect-ed 97.65% and revenue from home and office services reflected 2.35% of total revenue. The EBITDA was reported at INR 27857 million which grew 53.77% YoY with an EBITDA margin of 42.34%. With ARPu having moved up from ~INR 135 in 2021 to ~INR 195 in Sept 2023, we expect substantial improvement in profitability around similar lines as Bharti Airtel over the next 24-36 months and recommend to subscribe to the issue as a good long-term investment."

Way2Wealth Securities, Choice Broking, Canara Bank Securities, AUM Capital, and Ajcon Global Services have also recommended applying to the public issue.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.