The financial markets witnessed an impressive start for Bharti Airtel’s subsidiary, Bharti Hexacom Ltd, as its shares soared high with a substantial premium on the first day of trading. On a bustling Friday morning, traders and investors alike observed the company’s shares catapult to an overwhelming 32.49 per cent above the issue price on the Bombay Stock Exchange (BSE). The debut price was pegged at Rs 755.20, a significant leap from its issue price of Rs 570. As the day progressed, the share prices exhibited even more robust performance, peaking at a remarkable 44.68 per cent increase to Rs 824.70.
Not trailing behind, the National Stock Exchange (NSE) mirrored this upward trajectory with the shares kicking off at Rs 755, which also marked a substantial 32.45 per cent rise. This strong debut held the market’s attention and positioned Bharti Hexacom with an impressive market valuation, which stood at approximately Rs 40,637.50 crore.
The enthusiasm for Bharti Hexacom’s shares was apparent from the start, as evidenced by the overwhelming response to their initial public offering (IPO), which saw subscriptions balloon to 29.88 times on the final day of bidding, which was April 5. This enthusiasm was notable since Bharti Hexacom’s IPO represented the first public issuance for the fiscal year 2024-25, setting an encouraging tone for future market listings.
The excitement surrounding the IPO was further substantiated by the sizeable Rs 4,275-crore value of the initial share sale, open from April 3-5. The price band for the IPO was meticulously set at Rs 542-570 per share, a range that seemed to have been well-calibrated given the subsequent market response.
A distinct feature of the IPO was its nature as an Offer For Sale (OFS), comprising 7.5 crore equity shares, reflecting a 15 per cent stake owned by Telecommunications Consultants India Ltd. Notably, this meant that no new shares were issued as a part of the public offering.
Bharti Hexacom is a prominent player in the telecommunication services sector, with its operations spanning across the Northeast and the illustrious region of Rajasthan. The company’s roots are firmly anchored in its association with the Bharti group, which previously made headlines with its successful IPO of Bharti Infratel, now rebranded as Indus Towers, back in the year 2012.
The surge in Bharti Hexacom’s share prices on debut can be interpreted as a positive sign both for the company and for the telecom sector as a whole. The market’s reaction reflects the confidence investors have in the company’s growth prospects and the position it holds within the industry. Moreover, the successful listing could bode well for other telecommunications companies contemplating public offerings in the near future.
Considering the wider economic context, the entry of Bharti Hexacom into the stock market is also seen as an indication of the health and depth of the Indian markets, as well as a testament to the appetite for quality equity offerings among domestic and international investors.
In conclusion, Bharti Hexacom’s stellar debut on the stock exchange not only garners success for the company but marks an auspicious beginning to the financial year, hinting at the robustness of India’s IPO market. With the share prices outperforming expectations, the company ushers in a promising era for its stakeholders and sets a high bar for future market entrants seeking to captivate the investment community’s interests.
