Bharti Hexacom
Book Building issueMainboard₹4,275 Cr issue
+32.49%
Listing gain over issue price
Issue size
₹4,275 Cr
1 lot at cut-off
₹14,820
Lot size
26shares
Open
03 Apr 2024
Close
05 Apr 2024
Allotment
08 Apr 2024
Listing
12 Apr 2024
Listing performance
Issue price
₹570
Listed at
₹755.20
Listing-day close
₹813.75
Latest price
₹1,637.90
Close on 23 Oct 2026
Listing gain
+32.49%
Return since issue
+187.35%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Apr 2024 – 05 Apr 2024
- Listing date
- 12 Apr 2024
- Face value
- ₹5 per share
- Issue price
- ₹570 per share
- Lot size
- 26 shares
- Issue type
- Book Building issue
- Total issue size
- ₹4,275 Cr
- Market cap at offer price
- ₹28,500 Cr
- Promoter holding
- 70.00% → 70.00% pre-issue → post-issue
- ISIN
- INE343G01021
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- SBI Capital Markets Ltd.
- Registered office
- Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 3,37,50,000 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 26 shares per lot, in multiples, at ₹570
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 26 | ₹14,820 |
| Retail (max) | 13 | 338 | ₹1,92,660 |
| S-HNI (min) | 14 | 364 | ₹2,07,480 |
| S-HNI (max) | 67 | 1,742 | ₹9,92,940 |
| B-HNI (min) | 68 | 1,768 | ₹10,07,760 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
3,37,50,000
Anchor portion
₹1,924 Cr
at ₹570 per share
Valuation and performance
Valuation at offer price
₹570 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.98 | 7.51 |
| P/E (×) | 51.91 | 75.90 |
| Price to book (×) | 6.45 | — |
| Market cap | — | ₹28,500 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 7.08%
- Debt / equity
- 1.41
- NAV per share
- ₹88.32
- Price to book
- 6.45
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Bharti Hexacom
Bharti Hexacom Limited, incorporated in 1995 and originally named Hexacom India Limited, operates as a communications solutions provider under the 'Airtel' brand. The company provides consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and North East telecommunication circles, which comprise the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. As of December 31, 2023, the company had revenues from operations of ₹52,208 million for the nine months ended, with 97.10% derived from mobile services in its operating circles. The company is 70% owned by Bharti Airtel Limited (its promoter) and 30% by Telecommunications Consultants India Limited (selling shareholder). It achieved revenue market shares of 40.4% in Rajasthan and 52.7% in North East circles during this period.
Company Analysis
from RHPBharti Hexacom Limited is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services in the Rajasthan and North East telecommunication circles in India.
Bharti Hexacom Limited, incorporated in 1995 and originally named Hexacom India Limited, operates as a communications solutions provider under the 'Airtel' brand. The company provides consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and North East telecommunication circles, which comprise the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. As of December 31, 2023, the company had revenues from operations of ₹52,208 million for the nine months ended, with 97.10% derived from mobile services in its operating circles. The company is 70% owned by Bharti Airtel Limited (its promoter) and 30% by Telecommunications Consultants India Limited (selling shareholder). It achieved revenue market shares of 40.4% in Rajasthan and 52.7% in North East circles during this period.
TelecommunicationsMobile servicesFixed-line telephone servicesBroadband services
Objects of the Issue
- Carry out the Offer for Sale of 75,000,000 Equity Shares by the Selling Shareholder, constituting 15% of the pre-Offer paid up share capital of the Company ₹42,750 million p.20
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges p.20
- Offer for Sale of Equity Shares by Selling Shareholder and achieve benefits of listing p.101
- Not stated in this document section - this section covers offer pricing basis and KPIs, not uses of proceeds
- Not stated in this document section
- Not disclosed in Part 7 - This section contains MD&A, not offer details
Issue Structure
- Total Issue
- 75,000,000 Equity Shares aggregating to ₹42,750 million
- Fresh Issue
- Not applicable
- Offer for Sale
- 75,000,000 Equity Shares aggregating to ₹42,750 million by Telecommunications Consultants India Limited
- Price Band
- ₹542 (Floor Price) to ₹570 (Cap Price) per Equity Share
- Lot Size
- 26 Equity Shares and in multiples of 26 Equity Shares thereafter
- Face Value
- ₹5 per Equity Share
Business Model
The company generates revenue from providing consumer mobile services (97.10% of revenue from operations), fixed-line telephone services, and broadband services in the Rajasthan and North East circles. Revenue is earned from mobile services through prepaid and postpaid customer segments, and from fixed-line and broadband services. The company benefits from synergies with its promoter Bharti Airtel Limited through shared infrastructure, brand licensing, network access, and various service agreements.
Business Segments
Consumer mobile services including prepaid and postpaid customer segments in Rajasthan and North East circles
Home and office services including fixed-line telephone and broadband services
Provides mobile telecommunications services including voice calls, SMS, data services, and international roaming in Rajasthan and North East circles
Provides fixed-line telecommunications services in Rajasthan and North East circles
Provides mobile (wireless) voice, SMS, and data services to customers
Provides fixed-line telephone and broadband connectivity services
Provides consumer pre-paid and post-paid wireless voice services and data communication services (including 2G, 4G and 5G offerings), and international roaming of voice and data services
Offers fixed-line telephone and broadband services to households at speeds up to 1 Gbps provided as Airtel Xstream Fibre, ensuring fast internet connectivity and reliable voice services through Fiber to the Home (FTTH) connectivity. Also provides converged 'Airtel Black' solutions combining mobility, broadband, fixed line and digital TV services.
Provides 2G, 3G, 4G, and 5G mobile telecommunications services in Rajasthan; operates universal service obligations in aspirational districts
Provides 2G, 3G, 4G, and 5G mobile telecommunications services across Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim; operates universal service obligations funded by USOF
Covers voice and data telecom services provided through wireless technology (2G/4G/5G). This also includes intra city fibre networks.
Covers voice and data communications through fixed-line network and broadband technology for homes and offices.
Services cover voice and data telecom services provided through wireless technology (2G/4G/5G)
Services cover voice and data communications through fixed-line network and broadband technology for homes and offices
SWOT Analysis
Strengths
- • Strong market position in core circles(p.20)
- • Solid profitability and improving operational metrics(p.21)
- • Growth in ARPU and customer premiumization(p.50)
- • Established brand and network infrastructure support from Promoter(p.46)
- • Positive industry growth projections in core markets(p.20)
- • Market leadership in North East circle with growing dominance(p.55)
- • Significant operational presence and customer base(p.62)
- • Strong financial position with investment capacity(p.78)
- • Established leadership and large customer base in operating areas(p.108)
- • Strong market position in North East circle with #1 ranking(p.108)
- • Close second position in Rajasthan with narrowing gap to market leader(p.108)
- • Consistent ARPU growth demonstrating strong monetization(p.116)
- • Strong 4G and 5G customer base with high data penetration(p.116)
- • Extensive distribution network and retail presence(p.116)
- • Expanding network infrastructure and coverage(p.116)
- • High EBITDA margins reflecting operational efficiency(p.111)
- • Established leadership position with large customer base in target regions(p.197)
- • Consistent ARPU growth outperforming competitors in both circles(p.197)
- • Strong parentage with 70% owned by Airtel, a leading global telecom provider(p.199)
- • Significant synergies from relationship with Airtel including infrastructure and brand(p.195)
- • Extensive retail and distribution network with 89,454 retail touchpoints(p.201)
- • Diversified spectrum portfolio with mid-band spectrum enabling 5G Plus at lower cost(p.196)
- • Efficient non-standalone 5G deployment with lower capex requirements(p.204)
- • Experienced management team with deep industry expertise(p.202)
- • Regulatory framework for telecom services with exclusive government privilege and licensing(p.213)
- • Established independent regulatory authority (TRAI) ensuring fair competition and consumer protection(p.213)
- • Clear regulatory procedures for spectrum trading and sharing among service providers(p.214)
- • Structured framework for infrastructure rights-of-way to support network deployment(p.213)
- • Substantial spectrum holdings across multiple bands enabling diverse service delivery(p.286)
- • Established network infrastructure with significant PPE base supporting operations(p.287)
- • Long-term spectrum licenses providing operational certainty and regulatory stability(p.273)
- • Strong market position and leadership in North East circle(p.345)
- • Consistent ARPU growth through portfolio premiumization(p.345)
- • Robust network infrastructure with owned and leased assets(p.346)
- • Efficient spectrum portfolio enabling low-cost 5G deployment(p.346)
- • Extensive distribution and retail network reach(p.346)
- • Strong synergies with Promoter (Airtel) providing digital infrastructure and services(p.345)
- • Significant capital investments in digital infrastructure(p.345)
- • Strong EBITDA margin improvement(p.347)
Weaknesses
- • High geographic concentration and limited operational footprint(p.41)
- • Significant debt burden and restrictive covenants(p.44)
- • Dependency on third-party passive infrastructure(p.50)
- • History of losses and past regulatory failures(p.42)
- • High contingent liabilities exposure(p.44)
- • Dependence on Promoter relationship and trademark licensing(p.46)
- • Severely declining market share in Rajasthan circle(p.54)
- • Dependence on limited number of key vendors for critical network equipment(p.56)
- • High employee attrition rate historically(p.58)
- • Dependence on Promoter for key management personnel(p.58)
- • High leverage with significant borrowings(p.58)
- • Reliance on third-party vendors for fiber network infrastructure(p.57)
- • Geographic concentration in two circles limits diversification(p.108)
- • Limited wireline services presence relative to wireless(p.159)
- • Exposure to challenging terrain limiting infrastructure deployment(p.159)
- • Limited geographic presence confined to only two circles out of 22 in India(p.195)
- • Second position in Rajasthan circle with widening gap to market leader narrowing(p.197)
- • Significant dependence on Airtel for operational synergies and support(p.195)
- • Small customer base relative to industry peers(p.197)
- • Dependence on Department of Telecommunications approval for critical business transactions(p.214)
- • Spectrum validity period remains unchanged even in merger scenarios, limiting operational flexibility(p.214)
- • Mandatory spectrum surrender and auction participation requirements create operational constraints(p.215)
- • Significant concentration of receivables with parent company creating credit dependency(p.324)
- • High leverage with substantial borrowing obligations relative to equity base(p.337)
- • Substantial lease obligations concentrated in passive infrastructure creating long-term fixed liabilities(p.327)
- • Significant contingent tax liabilities and regulatory disputes with uncertain outcomes(p.305)
- • Elevated provisions for sub-judice matters reflecting regulatory and legal exposure(p.302)
- • Significant financial indebtedness requiring debt service(p.374)
- • High concentration of revenue in two circles with geographic dependence(p.348)
- • Revenue mostly dependent on mobile services with limited diversification(p.347)
- • Declining market share in Rajasthan circle(p.350)
- • High dependence on Promoter ownership and control(p.346)
- • Declining ARPU for fixed-line and broadband services(p.349)
- • Promoter involved in extensive litigation with government authorities on regulatory matters(p.397)
- • Pending DoT demand for license fee with significant financial exposure(p.397)
- • Multiple penalty demand notices from telecom regulators totalling substantial amounts(p.398)
- • Negative net tangible assets indicating balance sheet weakness(p.420)
- • EMF radiation violation demand notices from DoT with interim stay pending adjudication(p.398)
- • Multiple GST compliance issues with significant demanded amounts from state authorities(p.407)
Opportunities
- • Internet customer growth in core circles(p.20)
- • Premiumization and ARPU growth strategy(p.44)
- • Potential market share gains and circle expansion(p.41)
- • 5G services rollout potential requiring fiber infrastructure expansion(p.57)
- • Growth in telecom services demand across service areas(p.62)
- • Growth potential in high-teledensity Rajasthan with rural expansion underway(p.108)
- • Strong revenue growth trajectory in Rajasthan circle(p.108)
- • Government infrastructure investment supporting Northeast expansion(p.108)
- • 5G adoption and data monetization potential(p.143)
- • Industry revenue growth at 8.5-9.5% CAGR over next five years(p.145)
- • Significant low internet penetration in operating regions for expansion(p.160)
- • Rising per-capita income supporting telecommunications demand(p.156)
- • High growth potential in Rajasthan with rising teledensity and ARPU(p.198)
- • Significant opportunity in North East circle with industry growth of 6-7% CAGR(p.198)
- • Substantial headroom for post-paid customer migration in India(p.202)
- • Room for ARPU improvement as India has lowest telecom tariffs globally(p.202)
- • Government focus on infrastructure development in Rajasthan and North East(p.199)
- • Growing demand for broadband and homes services with low penetration(p.198)
- • Rising data consumption driving ARPU growth in both circles(p.199)
- • Expansion of backhaul capacity through new microwave spectrum bands(p.215)
- • Spectrum sharing mechanism to optimize infrastructure utilization(p.215)
- • Relaxed spectrum acquisition terms enabling market participation after lock-in periods(p.214)
- • Expansion of 5G services and technology across geographies leveraging newly acquired spectrum(p.286)
- • Growth in data and voice services revenue which constitute primary revenue stream(p.307)
- • Universal Service Obligation Fund (USOF) program enabling market expansion in underserved areas(p.308)
- • Development of homes and office services segment with growing subscriber base(p.307)
- • Internet customer base growth potential in Rajasthan circle(p.348)
- • Projected internet growth in North East circle(p.348)
- • Strategy to premiumize portfolio and acquire quality customers(p.345)
- • Convergence offerings through family and bundled plans(p.345)
- • Growth in high-income homes in service areas(p.349)
- • Expansion of home and office services customer base(p.367)
Threats
- • Regulatory pricing controls and tariff pressure(p.44)
- • High industry churn rates and competitive intensity(p.54)
- • Infrastructure challenges in remote and difficult terrain regions(p.41)
- • Natural calamities and geographic disruptions(p.41)
- • Skilled workforce shortage in circles of operation(p.41)
- • Negative litigation outcomes involving Promoter(p.41)
- • Regulatory and technological disruption risks(p.52)
- • Intense competition from major telecom operators(p.54)
- • Competition from internet-based communication services(p.55)
- • Spectrum acquisition risks and high auction prices(p.55)
- • Network quality and reliability risks(p.56)
- • Regulatory and licensing uncertainties(p.57)
- • Regulatory changes in privacy and data protection(p.66)
- • Natural disasters disrupting telecom operations(p.56)
- • Rising inflation impacting operational costs(p.68)
- • Dependence on adequate and affordable electrical power supply(p.62)
- • Intense competition from larger consolidated players with superior resources(p.138)
- • Price competition and tariff pressures in consolidated market(p.138)
- • High capital intensity and sustained spectrum payment obligations(p.137)
- • Rapid technological change requiring continuous infrastructure investment(p.137)
- • Rural market challenges including low monetization and terrain difficulties(p.137)
- • Regulatory dependency on spectrum auctions and government policy(p.137)
- • Highly consolidated market with top two players controlling over 72% market share(p.162)
- • Intense competition in consolidated market with only three private operators(p.209)
- • Geographic challenges limit infrastructure expansion and increase operational costs(p.201)
- • High power infrastructure challenges and costs in North East circle(p.174)
- • Lower population density increases cost per customer for network deployment(p.175)
- • Regulatory changes and spectrum auction costs affecting industry profitability(p.212)
- • Tariff regulation and forbearance policy limiting pricing power(p.208)
- • Regulatory changes in spectrum assignment methodology and terms(p.215)
- • Risk of spectrum reversion if unable to meet new auction or assignment criteria(p.215)
- • Compliance burden from multiple labor and employment law codes affecting operational costs(p.216)
- • Potential increase in regulatory levies and spectrum usage charges(p.215)
- • Regulatory compliance risks related to variable license fees and spectrum usage charges with adverse tax treatment determination(p.286)
- • Ongoing DoT demands and legal disputes regarding one-time spectrum charge with significant contingent liabilities(p.306)
- • Competitive intensity and pricing pressures in telecommunications sector affecting margins(p.328)
- • Interest rate and borrowing cost fluctuations impacting debt servicing obligations(p.300)
- • Service tax and GST disputes with revenue authorities creating tax uncertainty(p.305)
- • Intense competitive environment in telecom industry(p.350)
- • Price wars and tariff pressures from competition(p.350)
- • Mobile number portability enabling customer switching(p.350)
- • Capital-intensive nature requiring substantial ongoing investment(p.348)
- • Regulatory dependence and potential for new regulations(p.349)
- • Slow telecom customer base growth in service areas(p.348)
- • Convergence of telecom services increasing competition(p.350)
- • Ongoing regulatory disputes over spectrum allocation and rollout obligations(p.397)
- • Regulatory challenges to TRAI regulations on interconnect charges(p.397)
- • Telecommunications Commercial Communications Customer Preference Regulations challenges impacting operational compliance(p.397)
- • Pending Supreme Court litigation over cable landing station access charges regulations(p.399)
- • Port charges regulatory disputes with BSNL impacting interconnection costs(p.403)
- • Ongoing TRAI financial disincentive orders for regulatory non-compliance across multiple quarters(p.399)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bharti Airtel Limited | Promoter | 70.00% | 59.50% |
| Telecommunications Consultants India Limited | Selling Shareholder | 30.00% | 25.50% |
| Bharti Airtel Limited | Promoter | 70.00% | 70.00% |
| Telecommunications Consultants India Limited | Selling Shareholder/Promoter Group | 30.00% | — |
| Not stated in this document section | Promoter/Promoter Group | — | — |
| Bharti Enterprises (Airtel) | Promoter Group | 70% | — |
| Telecommunications Consultants India Limited (TCIL) | Promoter Group | 30% | — |
| Bharti Airtel Limited | Promoter | 70.00% | — |
| Bharti Airtel Limited | Holding company / Promoter | 70% | 70% |
| Satcom Resources Limited | Promoter | 30% | 30% |
| Bharti Airtel Limited | Promoter | 70% | — |
| Telecommunications Consultants India Limited (TCIL) | Promoter | 30% | — |
| Telecommunications Consultants India Limited | Selling Shareholder/Promoter | 30% | 15% |
| Telecommunications Consultants India Limited | Selling Shareholder | — | — |
| Bharti Airtel Limited | Promoter (BAL) | — | — |
Leadership
Jagdish Saksena Deepak · Chairperson
Marut Dilawari · CEO
Akhil Garg · CFO
Richa Gupta Rohatgi · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Bharti Hexacom IPO FAQs
What is the lot size of Bharti Hexacom IPO?
The minimum lot size of Bharti Hexacom IPO is 26 shares. One lot costs ₹14,820 at the cut-off price.
When does Bharti Hexacom IPO open and close?
Bharti Hexacom IPO opened for subscription on 03 Apr 2024 and closed on 05 Apr 2024.
What is the listing date of Bharti Hexacom IPO?
Bharti Hexacom IPO listed on 12 Apr 2024.