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Bharti Hexacom, a leading provider of fixed-line telephone and broadband services in India, is gearing up for its initial public offering (IPO). This blog delves into the key details of the Bharti Hexacom IPO, explores the company's background and financials, and helps you decide whether this offering aligns with your IPO investment goals.

Bharti Hexacom IPO fundamentals

  • Issue Type: Offer for Sale (OFS) of 7.5 crore shares by existing shareholders.
  • IPO Dates: Subscription opens on April 3, 2024, and closes on April 5, 2024.
  • Listing Date: Tentatively set for April 12, 2024, on BSE and NSE.
  • Price Band: ₹542 - ₹570 per share.
  • Minimum Lot Size: 26 Shares (₹14,820 minimum investment).
  • Lead Managers: SBI Capital Markets, Axis Capital, Bob Capital Markets, ICICI Securities, and IIFL Securities.
  • Registrar: Kfin Technologies Limited.

Bharti Hexacom IPO: about the company

Established in 1995, Bharti Hexacom focuses on providing fixed-line telephone and broadband services in Rajasthan and the North Eastern telecom circles of India. They have a presence in states like Rajasthan, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.

Bharti Hexacom IPO: financials

  • Customer Base: 27.1 million customers across 486 census towns.
  • Distribution Network: 616 distributors and 89,454 retail touchpoints.
  • Data Customers: 19.144 million, of which 18.839 million are 4G and 5G users.
  • Revenue Growth: 22.3% increase between FY2022 and FY2023.
  • Profit After Tax (PAT): -67.2% decline between FY2022 and FY2023.
  • Market Capitalization: Estimated at Rs 28,500 Cr.

Investment considerations for Bharti Hexacom IPO

  • Growth Potential: The Indian telecom sector is experiencing rapid growth, driven by rising internet penetration and increasing demand for data services. This presents a potential opportunity for Bharti Hexacom to expand its customer base and revenue.
  • Focus on Under-served Markets: Bharti Hexacom's presence in Rajasthan and the North Eastern states provides them with a niche market with growth potential.
  • Financial Performance: While revenue is growing, the recent decline in PAT is a cause for concern. Investors should carefully analyse the reasons behind this decline and future profitability projections.
  • Competitive Landscape: The Indian telecom market is highly competitive with established players like Bharti Airtel and Reliance Jio. Bharti Hexacom will need to differentiate itself to capture market share.

Should you invest in the Bharti Hexacom IPO?

The decision to invest in the Bharti Hexacom IPO depends on your individual risk tolerance and investment goals. Here are some points to ponder:

  • Risk Tolerance: The telecom sector is dynamic and can be susceptible to regulatory changes and competition. Investors should be comfortable with a moderate to high degree of risk.
  • Investment Horizon: A long-term investment horizon (5+ years) is recommended to ride out potential market fluctuations and benefit from the company's growth trajectory.
  • Diversification: Ensure your portfolio is well-diversified across different sectors and asset classes. The Bharti Hexacom IPO should not be your sole investment.

Bharti Hexacom IPO: conclusion

The Bharti Hexacom IPO offers an opportunity to invest in a growing telecom player with a focus on under-served markets. This blog simply offers an overview of the Bharti Hexacom IPO fundamentals and company financials. However, a thorough analysis of the company's financials, competitive landscape, and risk factors is crucial before making an investment decision. Consult a financial advisor if needed to determine if you should invest in the Bharti Hexacom IPO.

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