Bharti Hexacom Soars 32% Above IPO Entry - A Stellar Market Debut.

 Bharti Hexacom Share Price: Shares of Bharti Hexacom made a stellar debut today (April 12) as it listed with 32.4 per cent premium at ₹755 against the IPO price of ₹570 beating estimates of 12-15 per cent premium of the market experts. The ₹4,275-crore IPO of Bharti Hexacom, a subsidiary of Bharti Airtel is India's biggest public issue in one year.

Bharti Hexacom's shares had a great start on Dalal Street on Friday, with lots of investors keen to buy. The stock debuted at a price 32% higher than its IPO price of Rs 570 per share on both the BSE and NSE. This meant a profit of over Rs 4,800 for each set of 26 shares .

Bharti Hexacom's big investors, like Capital Group, Fidelity, Blackrock, and ADIA, joined in before the IPO started. The company raised about Rs 1,924 crore through this initial investment phase.

The IPO opened for subscription on April 3 and closed on April 5. It involved selling 7.5 crore shares, all from Telecommunications Consultants India, the company's sole public shareholder.

About Bharti Hexacom:

Bharti Hexacom, subsidiary of Bharti Airtel established in 1995 and it offers fixed line telephone and broadband services in the North Eastern region and Rajasthan covers 27.1 million customers surrounding 486 census towns through its distribution network through 616 distributors and 89,454 retail outlets. The company witnessed a decline in 67.2 % y-o-y in net profit which amounts to Rs. 549.2 crore. 

 BHL is the market leader in the North Eastern Region with a revenue market share of 52.7 % in 9 months FY 24 which was 42 % in FY 21,in Rajasthan it has a RMS of 40.4 % up from previous 32.7 %in FY 21

 Bharti Airtel holds 70% stake or 35 crore shares in the company as a sole promoter, government owned TCIL(Telecommunications Consultants India Ltd) offloads 15 % stake were booked nearly 30 times at a close. The company's topline has grown at a CAGR of 19.5% between FY 21 and FY 23.

From an average revenue per user(ARPU) of Rs.135 in FY 21 the company managed to increase it to Rs.195 in FY 23.

Today, Bharti Hexacom opened at 755 and made a high of 880 in Intraday, and finally closed at 813.30.

 JM Financial Institutional Securities has initiated BUY on BHL on the basis of Bharti Airtel's India wireless business revenue prediction. The ARPU is on structural uptrend which will grow at a rate of 10% CAGR. 

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