Bharti Hexacom shares: Investors could potentially see favorable listing gains from Bharti Hexacom Ltd shares today. The grey market premium for this telecom and broadband services provider has been steadily increasing since the bidding for its issue commenced.
According to the most recent information, Bharti Hexacom was said to have a premium of Rs 95-100 in the grey market, suggesting a potential listing increase of 17-18 percent above the issue price of Rs 570 per share. Just a day prior, the unofficial market premium stood at Rs 80-85, whereas it was Rs 65 per share when the public bidding for the issue began.
Investors anticipate the stock to provide double-digit returns, aligning with the grey market premium. They suggest holding onto the stock for the long run, citing the company’s sturdy business model, solid parent company, and healthy financial position.
Shivani Nyati, Head of Wealth at Swastika Investmart, stated that Bharti Hexacom is anticipated to enter the stock market with a modest listing increase of approximately 15 percent above the issue price, as indicated by its current grey market premium (GMP).
She mentioned that the IPO valuation of 51 times P/E seems to be fully priced, allowing limited space for immediate gains after listing.
Nyati added that Bharti Hexacom utilizes a substantial customer base, robust brand recognition, and an expansive distribution network to operate within rapidly growing markets. Additionally, the company benefits from its association with its supportive parent company, Bharti Airtel, further enhancing its advantages.
The New Delhi-headquartered company offered its IPO in the price range of Rs 542-570 per share. Through its stake sale, the company managed to raise Rs 4,275 crore, with the entirety of the offering comprising an offer-for-sale of up to 7,50,00,000 equity shares by Telecommunications Consultants India.
Prashanth Tapse, Senior VP of Research at Mehta Equities, expressed the expectation that Bharti Hexacom would debut with a robust 10-12 percent increase over its issue price, citing the prevailing optimistic market trend and strong subscription demand. He advised allotted investors to consider holding the stock for the long term exclusively.
The telecommunications services provider experienced significant demand for its IPO, garnering an overall subscription of 29.88 times. The quota designated for qualified institutional bidders was oversubscribed by 48.57 times, while that for non-institutional bidders was oversubscribed by 10.52 times. The portion allocated for retail investors saw a subscription of 2.83 times.
Prathamesh Masdekar, Research Analyst at StoxBox, anticipates that Bharti Hexacom will debut with a respectable premium of approximately 15 percent, buoyed by the robust oversubscription figures.
“We maintain a positive outlook on the company’s future performance and suggest investors who have been allotted shares to retain them from a medium to long-term standpoint,” he stated.
Bharti Hexacom provides fixed-line telephone and broadband services to customers in Rajasthan and the North East telecom circles of India. Its service coverage includes states such as Rajasthan, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
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The book-running lead managers for the Bharti Hexacom IPO comprised Axis Capital, BoB Capital Markets, SBI Capital Markets, ICICI Securities, and IIFL Securities, while Kfin Technologies acted as the registrar for the issue.
