Bharti Hexacom Makes Bumper Debut, Lists at 32% Premium to IPO Price


by Sandip Das on 12 April 2024,  5 min read


Share price of Bharti Hexacom made a bumper debut on the stock market on April 12, 2024. The company’s IPO (Initial Public Offering) had already generated significant buzz which exceeded expectations. The share price listed at 32 percent premium to the IPO price.

Bharti Hexacom’s IPO, valued at Rs 4,275 crore emerged as the largest public issue in the country in the past year. The IPO garnered substantial subscription figures, with the overall demand reaching nearly 30 times the allotted quota. This overwhelming response reflected investor confidence in Bharti Hexacom’s business potential and growth prospects.

One of the key contributors to the IPO’s success was the robust participation of qualified institutional investors (QIBs). QIBs played a pivotal role in driving the subscription figures, subscribing nearly 48.57 times their allocated quota.

Non-institutional investors demonstrated significant interest in the IPO, subscribing 10.52 times their portion. Retail investors, too, showcased strong enthusiasm, subscribing 2.83 times the reserved portion. This broad-based participation highlighted the widespread appeal of Bharti Hexacom’s business proposition among different investor segments, ranging from institutional players to individual retail investors.

Bharti Hexacom’s strong subscription figures were further bolstered by its compelling business model and market positioning. As a communications solutions provider, the company offers a comprehensive range of services, including consumer mobile services, fixed-line telephone, and broadband services. Operating in the Rajasthan and North-East telecommunication circles in India, Bharti Hexacom caters to diverse customer segments across these regions.

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The company has adopted a distinct approach to premiumise its portfolio by acquiring and retaining quality customers. Through its Omni channel approach and the strategic utilisation of data science, Bharti Hexacom aims to enhance the overall customer experience and drive long-term value creation.

Despite its impressive IPO debut and strong subscription figures, Bharti Hexacom has faced challenges in its financial performance. The company reported a significant year-on-year decline in net profit, amounting to 67.2 percent for the fiscal year FY23. This decline raises concerns about the company’s profitability and its ability to sustain growth momentum in the face of competitive pressures and market dynamics.

Bharti Hexacom operates in a dynamic and rapidly evolving environment characterized by technological advancements, changing consumer preferences, and regulatory developments.

In light of these factors, Bharti Hexacom’s IPO debut represents a significant milestone in its journey as a publicly listed company. The strong investor interest and positive market reception underscore the company’s potential to capitalise on emerging opportunities and navigate challenges effectively. Going forward, Bharti Hexacom’s ability to execute its strategic initiatives, enhance operational efficiency, and drive sustainable growth will be critical determinants of its long-term success in the market.

Bharti Hexacom’s impressive IPO debut reflects investor confidence in its business model, growth prospects, and market positioning. The company’s strong subscription figures, coupled with its compelling offerings and strategic initiatives, bode well for its future trajectory.

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Source: moneycontrol

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment.

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