Bharti Hexacom IPO to debut on the bourses on April 12; here’s what GMP, subscription status hint ahead of listing

Bharti Hexacom IPO listing date has been scheduled for Friday, April 12. This week is a truncated week as the domestic benchmark indices will remain closed on Thursday, April 11, on account of Ramadan Eid. Investors can check their allotment status on the website of the Bharti Hexacom IPO registrar, Kfin Technologies Limited, as the Bharti Hexacom IPO allotment has been finalised.

The crediting of shares to demat accounts for individuals who have been allotted shares will take place tomorrow, Wednesday, April 10. Further, tomorrow will also mark the completion of the refund process to individuals who have not been allotted shares.

Also Read: Bharti Hexacom IPO allotment out; latest GMP, steps to check application status online

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Bharti Airtel arm's initial public offer, Bharti Hexacom IPO, which opened for subscription on Wednesday, April 3, closed on Friday, April 5. On the last bidding day, Bharti Hexacom IPO subscription status was 29.88 times, as per BSE data. Qualified institutional buyers (QIBs- 48.57 times) were the issue's main drivers of subscriptions, with decent demand from retail investors (2.83 times) and some robust demand from non-institutional investors (NIIs - 10.52 times) following on the last day.

On the second day, Bharti Hexacom IPO subscription status was booked 1.12 times, and the issue was booked 34% on the day 1.

Also Read: Bharti Hexacom IPO allotment to be finalised today; latest GMP, step-by-step guide to check status

Not less than 75% of the offer was reserved for QIB, maximum 15% of the offer was set aside for NII, and maximum 10% of the offer was kept aside for retail investors.

Bharti Hexacom is a communications solutions provider that serves customers in Rajasthan and the North-East telecommunication circles in India, which include the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. It also provides fixed-line telephone and broadband services. The corporation uses the name "Airtel" to market its services.

In light of the current positive market trend and strong subscription demand from all sets of investors, Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, said that they expect Bharti Hexacom share price to list a healthy 10-12% higher to its issue price of ₹570 per share.

A strong chance for long-term investors to own mid-cap telecom solutions providers and profit from India's long-term telecom structural average revenue per user (ARPU) growth narrative justifies a healthy listing of about 10-12%, added Tapse.

Also Read: Bharti Hexacom IPO: What GMP, subscription status signal as focus shifts to allotment and listing date

Let's check what does Bharti Hexacom IPO GMP today signal ahead of listing.

Bharti Hexacom IPO GMP or grey market premium is +92. This indicates Bharti Hexacom share price were trading at a premium of ₹92 in the grey market, according to investorgain.com.

After taking into consideration the upper end of the IPO pricing range and the existing premium on the grey market, Bharti Hexacom shares are predicted to list at a price of ₹662 per share, 16.14% more than the IPO price of ₹570.

IPO GMP is going upward and is expected to have a solid listing based on the recent eighteen sessions of gray market activities. Analysts at investorgain.com estimate that the lowest GMP is ₹30, and the maximum GMP is ₹94.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Bharti Hexacom IPO booked 29.88 times on the last day of bidding process led by QIBs, NIIs. Check latest GMP

Bharti Hexacom IPO details

The Red Herring Prospectus of the firm states that the Bharti Hexacom IPO consists only of an offer-for-sale (OFS) and does not include a fresh issue component. Telecommunications Consultants India, the company's sole selling shareholder intends to sell off 7.5 crore equity shares, or 15% of the OFS.

TCIL had originally intended to offer up to 10 crore equity shares, according to the DRHP that was submitted to SEBI. The IPO only consists of OFS portion. As a result, the company is unlikely to receive any proceeds from the issue.

For the Bharti Hexacom IPO, Axis Capital Limited, Bob Capital Markets Limited, ICICI Securities Limited, SBI Capital Markets Limited, and IIFL Securities Ltd are the book running lead managers. Kfin Technologies Ltd is the issue registrar.

Also Read: Bharti Hexacom IPO receives lukewarm response on Day 1, issue booked 34%; check latest GMP

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