Bharti Hexa lists at 32% premium

A new and much anticipated listing today – Bharti Hexacom and it did not disappoint. As against the IPO price of Rs.570, the stock got listed on the BSE at Rs.755.20, a premium of over 32%. It went up to Rs.824 levels where many booked profits and is now trading at around Rs.799.

The IPO had done well thanks to the QIBs; overall it was subscribed 29.88 times of which QIBs was at 48,.57x, HNIs at 10.52x and Retail investors at 2.83x.

The company is a 70% subsidiary of Bharti Airtel, provides mobile, fixed-line telephone and broadband services in 2 of the 22 telecommunications circles in India. It serves 2.7 cr customers in Rajasthan and North-East (comprising 6 states) circles, under the brand ‘Airtel’, enjoying 40% and 53% revenue market share in the circles respectively.

In our IPO Analysis, we had concluded - Intensively competitive telecom sector, Bharti Hexacom’s financials trailing parents’ and lack of pricing incentive makes this IPO unexciting. Hence, we advise skipping the IPO of Bharti Hexacom.