Bharti Hexacom IPO: Planning to buy? Know 10 key risks involved before subscribing
The public issue will remain open till April 5, investors who wish to invest in the Bharti Hexacom IPO should know key risks involved in the public issue.
Bharti Airtel's subsidiary company Bharti Hexacom initial public offerings (IPO) opened for subscription today, April 3. On the first day of bidding, the issue was subscribed 0.18 times.
The retail portion received 24,36,252 shares against offered 75,00,000 share applications. Meanwhile, NII and QIB categories received 24,41,764 and 23,63,400 shares, respectively.
Also read: Bharti Hexacom IPO receives lukewarm response on Day 1, issue booked 34%; check latest GMP
The IPO price band for Bharti Hexacom has been fixed at ₹542 to ₹570 per share, with a face value of ₹5. Investors can bid for multiples of 26 shares, with a minimum bid of 26 shares.
In terms of allocation, Qualified Institutional Buyers (QIBs) are allotted 75% of the offer, Non-Institutional Investors (NIIs) are limited to 15%, and retail investors are capped at 10%.
The tentative timeline for the Bharti Hexacom IPO is as follows: The share allotment date is set for Monday, April 8. Refunds are scheduled to commence on Wednesday, April 10, and shares will be credited to the demat accounts of allottees on the same day. The listing of Bharti Hexacom shares on the BSE and NSE is expected to take place on Friday, April 12.
The public issue will remain open till April 5, investors who wish to invest in the Bharti Hexacom IPO should know key risks involved in the public issue.
Key risks involved in Bharti Hexacom IPO
- The company derive our revenues from providing mobile telephone services in Rajasthan and the North East circle and any unfavourable developments in such regions could adversely affect its business, results of operations and financial condition.
- There are outstanding legal proceedings involving its promoter, in addition to the company. Any adverse outcome in any of these proceedings may adversely affect the reputation, business, financial condition and results of operations.
- As of December 31, 2023, the company had contingent liabilities which have not been provided for in its Restated Financial Information and could adversely affect its business, financial condition and results of operations.
- Reduction in revenue it earns through its 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 the business, financial condition, results of operations and prospects.
Also read: Bharti Hexacom IPO to open tomorrow; here are 5 factors to consider before investing
- The company is dependent on a limited number of vendors to supply critical network and other equipment and services.
- The company rely on sophisticated billing, credit control and customer verification systems, any failure of which could lead to a loss of income and customers.
- The company have incurred losses in the past and we may not achieve or sustain profitability in the future.
- A large part of its passive infrastructure is not owned by the company and it rely on third party providers for such infrastructure. It cannot assure that such passive infrastructure will be adequately maintained or that its strategy for the continued upgrade or rollout of its network will be implemented in a timely manner or on a cost-effective basis.
- The company is exposed to certain risks in respect of the development, expansion and maintenance of our mobile telecommunications networks.
- The company face intense competition that may reduce its market share and lower its profits.
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