Bharti Hexacom Gets Sebi Approval To Float IPO, Check Details Here

Bharti Airtel’s arm Bharti Hexacom has received capital markets regulator Sebi’s nod to mobilise funds through an initial public offering (IPO).

Bharti Hexacom provides telecommunication services in Rajasthan and the Northeast.

The IPO will not have any fresh issuance of equity shares, and since it is an offer for sale or OFS, Bharti Hexacom will not receive any proceeds from the issue.

Under the OFS, 10 crore equity shares will be offloaded by Telecommunications Consultants India Ltd. The offer represents 20 per cent of the paid-up equity share capital of Bharti Hexacom.

Bharti Hexacom, which filed draft papers with the markets regulator in January, obtained its observation letter on March 11, an update with the Sebi showed on Tuesday.

In Sebi’s parlance, obtaining the observation letter means its go-ahead to float the public issue.

About Company

According to the company’s website, Bharti Airtel holds 70 per cent of the equity share capital of the company and the government through Telecommunications Consultants India holds 30 per cent.

It is among the top global mobile operators in terms of number of customers and India’s largest integrated communications solutions provider in terms of consolidated operating revenue as of fiscal 2023.

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

The company’s shares are proposed to be listed on the BSE and NSE.

What is an IPO?

IPO stands for Initial Public Offering. It refers to the process through which a privately-held company offers shares of its stock to the public for the first time. In an IPO, the company issues new shares of stock to raise capital, and these shares are then sold to investors on the open market through stock exchanges.

For a company, conducting an IPO can be a significant milestone as it provides access to a much larger pool of capital and liquidity for its shareholders. It also allows the company’s ownership to be distributed among a wider range of investors. Additionally, an IPO can increase the company’s visibility and credibility in the financial markets.

(With PTI inputs)