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BHARTI HEXACOM IPO

IPO Details

-
-
26 Shares
₹ 14,820
₹ 542 – 570
₹ Up to 4,275 Cr

Issue timeline

  • -
  • 08-Apr-2024
  • 10-Apr-2024
  • 10-Apr-2024
  • 12-Apr-2024

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

-  A communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services under the brand ‘Airtel’

- Provides services to customers in the Rajasthan and the North East telecommunication circles in India, which comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.

-They were at number one position in the North East circle during the six months ended September 30, 2023 and Fiscals 2023 and 2022.

Strengths & Risks

Strengths (3)

Established Leadership and Large Customer Base
As of September 30, 2023, they were present in 486 census towns and had an aggregate of 29.1 million customers. As of the same date, their customer base included 18,592 thousand data customers, of which 18,270 thousand were 4G and 5G customers, and the customers consumed approximately 22.8 GB of data per customer per month during the six months ended September 30, 2023. (source: CRISIL Report)

Risks (2)

Dependent on a limited number of vendors to supply critical network
Their principal vendors and suppliers provide network equipment and related services and site infrastructure for operations. While they have supply and services agreements with key suppliers and vendors, they cannot assure that they will be able to obtain satisfactory equipment and services as per expectations. Any material breach or non-compliance by their vendors could have an adverse effect on business and results of operations (Source: Company DRHP)

  • Established Leadership and Large Customer Base
    As of September 30, 2023, they were present in 486 census towns and had an aggregate of 29.1 million customers. As of the same date, their customer base included 18,592 thousand data customers, of which 18,270 thousand were 4G and 5G customers, and the customers consumed approximately 22.8 GB of data per customer per month during the six months ended September 30, 2023. (source: CRISIL Report)

  • Presence in Markets with High Growth Potential
    Rajasthan had a teledensity of 79.5% as of Fiscal 2023, which lags the national average of 84.5% due to its lower rural teledensity of 57.2%. Rajasthan’s customer base is expected to grow at 1% to 1.5% between Fiscals 2023 and 2028 with a teledensity of 82% to 83% following pan-India trends with rising rural teledensity. The North East circle had a teledensity of 79.7% as of Fiscal 2023 due to the limited penetration of wireline services given the region’s hilly terrain and extreme weather conditions. The region is also receiving special attention from the Government towards infrastructure improvement (Source: CRISIL Report)

  • Strong Parentage and Established Brand
    Airtel owns 70% of the company's outstanding equity share capital. Airtel is a global communications solutions provider with over 500 million customers in 17 countries across South Asia and Africa. They derive significant synergies from relationship with Airtel and its affiliates, including through Indus Tower’s infrastructure, inter circle roaming arrangements, its national long distance network and corporate functional support. (Source: Company DRHP)

  • Dependent on a limited number of vendors to supply critical network
    Their principal vendors and suppliers provide network equipment and related services and site infrastructure for operations. While they have supply and services agreements with key suppliers and vendors, they cannot assure that they will be able to obtain satisfactory equipment and services as per expectations. Any material breach or non-compliance by their vendors could have an adverse effect on business and results of operations (Source: Company DRHP)

  • They have incurred losses in the past and may not achieve or sustain profitability in the future.
    They have, in the past, incurred loss in their operations. In Fiscal 2021, their revenue and profitability were impacted by low average revenue per user ("ARPU"), which was addressed by a tariff hike in November 2021.If they are ultimately unable to generate sufficient revenue to meet financial targets, reduce costs, remain profitable and have sustainable positive cash flows, they could incur losses in future. (Source: Company DRHP)

Financials

Net Worth
Total Income
Total Borrowings
Restated Profit/Loss
Basic Earning Per Share

Industry Overview

- China and India are the top two telecom markets by customer base: China is the largest telecom market, with 1,781 million wireless customers as of 2022. India follows with 1,143 million wireless customers as of 2022. India has emerged as one of the five fastest-growing wireless telecom markets, with its customer base clocking 2.9% CAGR between calendar years 2013 and 2022. However, at 82.6 as of 2022, India’s wireless customers per 100 people is the lowest among the top five wireless markets as well as among emerging markets, indicating potential for further growth


- Mobile data traffic has increased exponentially in the last 10 years: Growth in the digital economy has encouraged people to rely more on digital applications for commonplace activities, leading to rise in mobile users and data consumption. Overall mobile customers' growth has been in the range of 2-4% CAGR across regions during the last ten years. However, growth was higher during the pandemic. Global mobile traffic per customer increased from 0.6 GB/customer/month in 2013 to 21.0 GB/customer/month in 2023, logging 35x growth in data consumption.

Bharti Hexacom IPO FAQs

What is the minimum lot size and investment required for Bharti Hexacom IPO?

The lot size is 26 shares and minimum investment required is Rs.14,820 for Bharti Hexacom IPO

Bharti Hexacom IPO is mainboard IPO of issue size up to Rs.4,275 Crores

Bharti Hexacom IPO issue dates are from 03rd – 05th Apr, 2024

The allotment date is 08th Apr, 2024 and listing date is 12th Apr, 2024 for Bharti Hexacom IPO

Head to IPO section on ICICI Direct website and select Bharti Hexacom IPO. Enter and submit bid details and then click on proceed to apply once details are verified. It’s that simple!!

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Bharti Hexacom IPO

₹ 14,820
26 Shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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