Airtel's unit Bharti Hexacom gets Sebi nod to raise funds through an IPO

Capital markets regulator Sebi approved the initial public offering (IPO) of Bharti Airtel‘s unit Bharti Hexacom along with the issue of Jyoti Structures Ltd.

Bharti Hexacom had filed its draft papers with the regulator earlier in January this year.

The IPO is completely an offer for sale of up to 10 crore shares by Telecommunications Consultants India. Since the issue is an OFS, Bharti Hexacom will not receive any proceeds.

The government is looking to garner around Rs 10,000 crore through the stake sale by Telecommunications Consultants, a state-owned telecom engineering and consulting firm with business interests overseas, including in pan-African and West Asia markets.

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Bharti Hexacom runs mobile services in Rajasthan and the Northeast circles of India. Airtel will continue to hold a majority stake in the subsidiary.The northeast telecommunication circles in India comprise the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.From an average revenue per user (ARPU) of Rs 135 in FY21, Bharti Hexacom has managed to improve this to Rs 195 during the six months ended September 2023.

As of September 2023, the company had an aggregate of 29.1 million customers across both circles.

Bharti Hexacom has a spectrum portfolio with a varied pool of mid-band spectrum, which has enabled us to offer 5G plus services to customers.

For the six months ended September, Bharti Hexacom reported a revenue of Rs 3,420 crore, compared to Rs 3,167 crore a year ago. However, profit dropped to Rs 69 crore from Rs 195 crore a year ago.

SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities are the book-running lead managers to the issue.


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