An upcoming IPO of Bharti Hexacom, a Bharti Airtel subsidiary, is expected to have a big effect on the Indian stock market. The offer amount is Rs 4,275 crore, which is a lot of money.
This IPO is different because it is set up completely as an offer-for-sale (OFS). This means that the money from the sale will go to the shareholders who are selling their shares, not to the company to help it grow or develop.
The price range for this IPO is Rs 542 to Rs 570 per share. This price range was chosen to appeal to a wide range of investors, taking into account both the needs of the selling shareholders and the cost of the market.
Lot Size and Entry Threshold
The minimum investment needed is an important thing for possible investors to think about. The IPO was made so that a wide range of buyers could participate. The lowest amount of shares that can be bought is Rs 14,092, and the highest amount is Rs 14,820. Each lot must contain at least 26 shares.
This lot size and pricing strategy shows that the company wants to bring in a wide range of investors, from individuals to bigger institutions.
Also Read: Top IPOs To Look Out For In March 2024
Profile Of The Company And Its Place In The Market
Bharti Hexacom has been a major player in the telecommunications business since its founding in 1995, especially in the North Eastern regions and Rajasthan. Over the years, the company has built up a large customer base by specializing in fixed-line phone and internet services.
Their position in the market is strengthened by a strong distribution network that includes many distributors and retail touchpoints. This large network shows that the company wants to reach a wide range of customers and stay strong in the areas where it does business.
For the fiscal year FY23, Bharti Hexacom’s net profit dropped by 67.2%, which is a big drop. The main reason for this drop was a bigger base the year before, which included big gains.
Anyway, even though sales went down, the company still had good revenue growth, with operations revenue up 21.7% compared to the previous fiscal year. It’s clear from these numbers that the company is financially stable and can keep making money even when its net profit goes up and down.
Risk Factors And Lead Managers’ Expertise
People who want to invest in this should carefully think about the risks that come with it. One of the biggest risks is that the company’s operations are mostly focused on certain areas of the world, mostly Rajasthan and the North East. Any bad things that happen in these areas could have a big effect on the business and finances of the company.
The company might also have trouble making money because the telecom business is always changing rules and prices are being pushed up.
Still, the IPO is being run by a group of well-known financial institutions, such as SBI Capital Markets, Axis Capital, and ICICI Securities. This gives the management of the offering a level of skill and trustworthiness.
More: What Are The Pros And Cons For Investing In IPOs In The Year Of 2024
Listing And Market Entry
As of April 12, 2024, the IPO will be listed on major stock exchanges like BSE and NSE. This is a great chance for investors in the telecommunications industry.
The company’s large customer base and smart investments in digital technology show that it has the potential to grow and stay in business in the future.
The listing date and platforms chosen are in line with the company’s long-term goals of reaching a larger market and becoming more well-known among investors.
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