Bharti Hexacom Set To Debut After India's Biggest IPO In A Year

Bharti Hexacom Limited, a leading integrated telecommunications infrastructure provider in India, is all set to make its stock market debut after the country's biggest Initial Public Offering (IPO) in the past year. The company raised approximately INR 13,675 crore (around USD 1.8 billion) through its IPO, which was subscribed over 112 times during its three-day bidding period that ended on March 10, 2023.

The IPO was a part-offer for sale (OFS) of shares by Bharti Infratel and Bharti Airtel, who together sold 112 crore shares at INR 121 per share. The proceeds from the sale will be used by Bharti Infratel to repay debt and for general corporate purposes.

Bharti Hexacom is a joint venture between Bharti Infratel and Bharti Airtel, with each holding a 42.7% stake in the company. The new entity was formed through the merger of Indus Towers and Bharti Infratel's tower business in 2022. The merged entity will be the largest tower company in India with over 163,000 towers and 260,000 additional rooftops across 22 telecom circles in India.

The company's IPO was a significant event in the Indian capital markets as it was the biggest since Coal India's INR 15,200 crore IPO in 2022. The strong demand for the shares reflected investors' confidence in the growth potential of the telecom infrastructure sector in India, which is expected to benefit from the ongoing rollout of 5G technology and increasing data consumption.

The listing of Bharti Hexacom is also expected to provide a liquidity boost to its promoters and institutional investors who have held shares in Bharti Infratel and Bharti Airtel for a long time. The stock is set to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) from March 15, 2023.

In conclusion, Bharti Hexacom's successful IPO marks a significant milestone for the Indian telecom infrastructure sector and is expected to provide a fillip to the ongoing consolidation in the sector. The company's strong financial position and growth prospects make it an attractive investment opportunity for both retail and institutional investors.