About the Company:
Bharti Hexacom Limited, a prominent player in the telecommunications industry, was founded in 1995. It has established itself as a key provider of fixed-line telephone and broadband services, primarily operating in Rajasthan and the Northeast regions of India. Demonstrating a commitment to advancing digital infrastructure, the company has invested a substantial amount, approximately ₹206 billion as of December 31, 2023, to position itself for future technological advancements.
Market Penetration and Customer Base
Bharti Hexacom Limited has successfully penetrated various markets, serving customers across multiple states including Rajasthan, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. By the end of December 2023, the company ha`d amassed an impressive customer base of 27.1 million spread across 486 census towns. This wide-reaching presence underscores the company's strength and influence within the telecom sector.
Strong Distribution Network
The company boasts a robust distribution network comprising 89,454 retail touchpoints, which facilitates efficient customer outreach and service delivery. This extensive network plays a crucial role in maintaining Bharti Hexacom Limited's competitive edge and market dominance.
Emphasis on Data Services
Bharti Hexacom Limited places significant emphasis on data services, as evidenced by its 19,144 thousand data customers as of December 31, 2023. Notably, a substantial portion of these customers, totaling 18,839 thousand, are utilizing 4G and 5G services. This strategic focus reflects the company's alignment with evolving technological trends and consumer preferences.
IPO Objectives
The primary objectives of Bharti Hexacom Limited's IPO are two-fold:
- Offer for Sale: The IPO includes an offer for sale of up to 75,000,000 Equity Shares by the Selling Shareholder, providing investors with an opportunity to partake in the company's growth journey.
- Listing Benefits: By listing its Equity Shares on the Stock Exchanges, Bharti Hexacom Limited aims to enhance visibility, liquidity, and access to capital markets, thereby leveraging the benefits of being a publicly traded entity.
Summary of Financial Information:
| Period Ended | 31-Dec-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 19,603.00 | 18,252.90 | 16,674.30 | 15,003.50 |
| Revenue | 5,420.80 | 6,719.20 | 5,494.00 | 4,704.30 |
| Profit After Tax | 281.8 | 549.2 | 1,674.60 | -1,033.90 |
| Net Worth | 3,978.80 | 3,972.20 | 3,573.20 | 1,898.70 |
| Reserves and Surplus | 4,166.10 | 3,959.50 | 3,410.50 | 1,736.00 |
| Total Borrowing | 6,253.00 | 6,269.30 | 7,198.30 | 5,975.20 |
Comparison with Peers:
| Company Name | P/E | P/B | RoE (%) |
| Bharti Hexacom Ltd | 76 | 6.45 | 10 |
| Bharti Airtel Ltd | 88 | 9.09 | 17 |
| Vodafone Idea Ltd | NA | -0.66 | NA |
Key Details of the Bharti Hexacom IPO
- IPO Dates: April 3 to April 5, 2024
- Price Band: Rs. 542 to Rs. 570 per share
- Lot Size: 26 Shares
- Offer for Sale: Rs. 4,275.00 Crores
- Retail Quota: 10%
- Grey Market Premium (GMP): Rs. 40 (Provided for informational purposes only)
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
