Introduction to Bharti Hexacom IPO
Bharti Hexacom Limited’s initial public offering (IPO) opened for subscription on April 3, 2024, and is set to close on April 5, 2024. The IPO, valued at ₹4,275 crore, has garnered positive attention from primary market investors. However, the sentiment in the grey market regarding the Bharti Hexacom IPO is mixed.
Grey Market Premium (GMP) and Subscription Status
Bharti Hexacom IPO GMP Today: Market observers report a grey market premium of ₹62 per share for Bharti Hexacom, marking a slight increase from the previous day’s GMP of ₹59. This stability in GMP is attributed to a range-bound trading scenario ahead of the RBI MPC meeting outcome.
Subscription Status: As of the end of the second day, the IPO has been subscribed 1.12 times overall, with the retail portion oversubscribed by 1.15 times. Notably, the Non-Institutional Investor (NII) segment has shown strong interest, with a subscription of 1.71 times, while the Qualified Institutional Buyer (QIB) portion remains at 0.82%.
Financial Performance and Company Overview
Revenue Growth: Bharti Hexacom witnessed a commendable revenue growth of nearly 22% year-on-year (YoY) in FY23. However, its Profit After Tax (PAT) saw a significant decline of over 67% during the same period.
Asset and Net Worth: The company’s assets increased from around ₹18,250 crore in FY23 to approximately ₹19,600 crore in the first nine months of FY23-24. Meanwhile, the net worth stood at around ₹39,780 crore by the end of the first nine months.
Expert Recommendations
Marwadi Shares and Finance Limited: This firm recommends subscribing to the IPO, highlighting Bharti Hexacom’s position as a communications solutions provider offering mobile and broadband services in Rajasthan and the North East circles.
SMIFS: With a positive outlook on the company’s revenue and profitability, SMIFS suggests subscribing to the issue for long-term investment, expecting a similar trajectory to Bharti Airtel.
Other Recommendations: Way2Wealth Securities, Choice Broking, Canara Bank Securities, AUM Capital, and Ajcon Global Services also advise applying for the IPO.
More About
While Bharti Hexacom’s financial performance exhibits growth potential, investors should carefully consider expert recommendations and the subscription status before making investment decisions. As with any investment, thorough due diligence is advised to mitigate risks and maximize returns.
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