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Bharti Hexacom shares could make a healthy stock market debut on April 12 after its successful IPO at Rs 4,275 crore. Experts expect listing gains as the shares could list at Rs 650-660, with a premium of 12-15 percent over the issue price of Rs 570.
“The listing is justified as there is a great opportunity for long-term investors to hold mid-sized telecom solutions providers and participate in India's structural ARPU growth story in the telecom sector for the long term,” said Prashanth Tapse, research analyst at Mehta Equities.
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Tapse also added that Bharti Hexacom's anchor book features the participation of top global investors such as Capital Group, Fidelity, Blackrock and ADIA ahead of the IPO opening, providing greater convenience to investors. The Airtel subsidiary has collected around Rs 1,924 crore through its anchor book.
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The offer received a whopping 29.88x subscriber numbers. Qualified institutional investors bought the most, purchasing 48.57 times the allocated quota. Non-institutional investors or NIIs came second, subscribing 10.52 times the allotted quota, followed by retail investors, subscribing 2.83 times the allotted quota.
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Bharti Hexacom is a unit of Bharti Airtel and provides landline telephone and broadband services primarily in Rajasthan and the Northeast. The company serves 27.1 million customers in 486 census cities through a distribution network of 616 dealers and 89,454 retail touchpoints.
Prathamesh Masdekar, analyst at StoxBox, believes that the company has extensive market coverage and penetration, reflected in its top position in the highly competitive North East district alongside a second position in the Rajasthan district.
Shivani Nyati, Head of Wealth at Swastik Investmart, suggests that the company leverages its extensive customer base, well-established brand reputation and widespread distribution channels to succeed in fast-growing markets. Furthermore, being part of Bharti Airtel, a supportive parent company, further strengthens its competitive advantage and market position.
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The public offering opened for subscription on April 3 and closed on April 5. The ₹4,275 crore offer is a pure offer for sale of ₹7.5 crore shares. Telecommunications Consultants India, the company's sole public shareholder, will offload 7.5 crore shares or 15 per cent of OFS shares.
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