BHARTI HEXACOM LTD (MAINBOARD)

Apr 3, 2024 - Apr 5, 2024

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Top 5 Anchor Details

Name of Anchor	No. of Shares	% Portion	Amount (cr)
Abu dhabi investment authority - monsoon	1754402	5.20%	100.00
Stiching depositary APG emerging markets equity pool	1578954	4.68%	90.00
Small cap world fund, INC	1371994	4.07%	78.20
SBI contra fund	1333358	3.95%	76.00
Fidelity funds - sustainable asia equity funds	934986	2.77%	53.29
Total	6973694	20.67%	397.49

Established in 1995, Bharti Hexacom Limited is a telecommunications provider serving regions including Rajasthan and the North East circles of India. With a focus on fixed-line telephone and broadband services, the company has expanded its reach to states such as Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. By prioritizing digital infrastructure investments, totaling ₹206 billion by December 31, 2023, Bharti Hexacom aims to stay ahead in the evolving telecom landscape. Boasting a substantial customer base of 27.1 million spread across 486 census towns, the company also maintains a robust distribution network comprising 616 distributors and 89,454 retail touchpoints. Notably, as of the same date, Bharti Hexacom had garnered 19,144 thousand data customers, a significant portion of which, 18,839 thousand, were 4G and 5G subscribers, reflecting its commitment to technological advancement and customer satisfaction.

IPO Details

Issue Size	Up to 75,000,000 Equity Shares aggregating up to [4275] cr.
Offer For Sale	Up to 75,000,000 Equity Shares aggregating up to [4275] cr.
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Share holding pre issue	500,000,000
Share holding post issue	500,000,000

IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more Than 75% of the net Offer
Retail Shares Offered	Not more than 10% of the  Offer
NII (HNI) Shares Offered	Not more than 15% of the  Offer

Key Performance Indicators

KPI	Dec-23	Mar-23	Mar-22
ROCE	10.68%	10.72%	4.10%
RONW	7.08%	13.83%	46.87%
D/E	1.41	1.48	1.94
EPS (basic & diluted)	5.64	10.98	33.49
P/BV	6.45
P/E Pre IPO	51.89

IPO Financials

Period	Dec-23	Mar-23	Mar-22	Mar-21
Assets	19,603	18,252.90	16,674.30	15,003.50
Revenue	5,421	6,719.20	5,494.00	4,704.30
Profit After Tax	282	549	1,674.60	-1,033.90
Net Worth	3,978.80	3,972.20	3,573.20	1,898.70
Reserve & surplus	4166.10	3959.20	3410.50	1736
Total Borrowing	6,253	6,269.30	7,198.30	5,975.20
Amount in crores

Strength Factors

Strong Parentage and Established Brand: The company benefits from a strong parent company or lineage, which provides stability, resources, and credibility. This backing contributes to a robust brand identity that is trusted by customers, stakeholders, and the market at large.

 Building a Future-Ready Network: The company's proactive approach towards building a future-ready network positions it ahead of competitors in adapting to technological advancements, market trends, and changing consumer preferences. By investing in cutting-edge technologies, infrastructure, and talent, the company ensures scalability, agility, and relevance in an ever-evolving business landscape.

 Extensive Distribution and Service Network: The company boasts an extensive distribution and service network, which enhances its reach, accessibility, and customer satisfaction. With a wide-reaching network of distribution channels, sales outlets, and service centers, the company can efficiently deliver products, provide support, and cater to diverse customer needs across various geographic locations

Risk Factors

Regional Vulnerability: The company's reliance on revenues from providing mobile telephone services in specific regions, particularly Rajasthan and the North East circle, exposes it to risks associated with any unfavorable developments in those areas. Factors such as regulatory changes, economic downturns, or infrastructural challenges in these regions could negatively impact the company's business operations, financial performance, and overall stability.

 Regulatory and Pricing Risks: Revenue generated from telecom services is susceptible to regulatory constraints, pricing pressure, and reductions in average revenue per user (ARPU). Regulatory ceilings on pricing or competitive pressures in the telecom market could lead to a decline in revenues, negatively impacting the company's profitability, financial stability, and growth prospects.

Indebtedness and Refinancing Risk: The company's significant indebtedness requires it to service debt obligations and comply with lenders' covenants to avoid default. Failure to meet debt obligations or refinance existing debt exposes the company to default risks, which could result in severe consequences such as asset seizure, credit rating downgrades, or loss of investor confidence. Such outcomes could adversely affect the company's business operations, profitability, and long-term viability.

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SBI Capital Markets Limited

Axis Capital Limited

BOB Capital Markets Limited

ICICI Securities Limited

IIFL Securities Limited

KFIN Technologies Limited

Contact Person : M. Murali Krishna

Email: bhl.ipo@kfintech.com

Telephone: +91 40 6716 2222/ 18003094001

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