Shivani Nyati, Head of Wealth at Swastika Investmart, expects Bharti Hexacom to see a moderate listing gain of around 15% over the issue price. "The company's financial performance has been inconsistent, with a recent decline in profits. Additionally, geographic concentration, reliance on third-party infrastructure, and intense competition within the industry pose challenges to future growth."
Further, Nyati said the IPO valuation of 51 times P/E (price-earnings) appears fully priced, leaving limited room for immediate gains after listing.
According to market observers, shares of Bharti Hexacom are commanding a premium of ₹92 in the unlisted market today (April 9). The premium in the grey market has been climbing since the closure of the bidding process.
Bharti Hexacom IPO details
Bharti Hexacom's IPO, which was open for bidding from April 3-5, was priced in the range of ₹542-570 per share.
The issue was entirely an offer-for-sale (OFS), without any fresh equity issue. Telecommunications Consultants India (TCIL), the sole public shareholder in the company, offloaded 7.5 crore equity shares or a 15% stake via the OFS.
Since the issue is an OFS, Bharti Hexacom will not receive any proceeds. All the proceeds will be allotted to the selling shareholder in the company.
The Sunil Mittal-driven telecom major Bharti Airtel holds a 70% stake or 35 crore shares, while the remaining 30% shareholding, equivalent to 15 crore equity shares, was held by non-promoter TCIL. Read more:
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