Bharti Hexacom Limited (“Bharti Hexacom” or “the Company”), shall open its Bid / Offer in relation to its initial public offer (IPO) of Equity Shares on Wednesday, April 03, 2024.
The total offer size of Equity Shares of face value ₹ 5 each comprising an offer for sale of up to 75,000,000 equity shares by Telecommunications Consultants India Limited (“Selling Shareholder”) (The “Offer For Sale”).
The Anchor Investor Bidding date shall be Tuesday, April 02, 2024. The Bid/Offer will close on Friday, April 05, 2024.
The Price Band of the Offer has been fixed at ₹ 542 to ₹ 570 per Equity Share. Bids can be made for a minimum of 26 Equity Shares and in multiples of 26 Equity Shares thereafter.
The objects of the Offer are to (i) to carry out the Offer for Sale of up to 75,000,000 Equity Shares by the Selling Shareholder; and (ii) achieve the benefits of listing the Equity Shares on the Stock Exchanges. (The “Objects of the Offer”)
This Equity Shares are being offered through the red herring prospectus of the Company dated March 22, 2024 filed with the Registrar of Companies, Delhi & Haryana (The “RHP”) and are proposed to be listed on the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”). (The “Listing”).
SBI Capital Markets Limited, Axis Capital Limited, BOB Capital Markets Limited, ICICI Securities Limited and IIFL Securities Limited are the Book Running Lead Managers to the offer (“BRLMs”).
The IPO Structure:
This is an Offer in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made through the Book Building Process in terms of Regulation 6(2) of the SEBI ICDR Regulations, wherein at least 75% of the Offer shall be allocated to Qualified Institutional Buyers (“QIBs” and such portion, the “QIB Portion”), provided that our Company, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (the “Anchor Investor Portion”), out of which one-third shall be reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the price at which Equity Shares are allocated to Anchor Investors (“Anchor Investor Allocation Price”), in accordance with the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Category (excluding the Anchor Investor Portion) (“Net QIB Portion”).
Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. If at least 75% of the Offer cannot be Allotted to QIBs, then the entire application money will be refunded forthwith. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs.
Further, not more than 15% of the Offer shall be available for allocation to Non-Institutional Bidders (“NIBs”) of which (a) one-third portion shall be reserved for applicants with application size of more than ₹200,000 and up to ₹1,000,000; and (b) two-thirds portion shall be reserved for applicants with application size of more than ₹1,000,000, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Bidders, subject to valid Bids being received at or above the Offer Price
And not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders (“RIB”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders (except Anchor Investors) are mandatorily required to utilise the Application Supported by Blocked Amount(“ASBA”) process by providing details of their respective ASBA accounts and UPI ID (defined hereinafter) in case of UPI Bidders (defined hereinafter), as applicable, pursuant to which their corresponding Bid Amount will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or by the Sponsor Bank(s) under the UPI Mechanism, as the case may be, to the extent of the respective Bid Amounts. Anchor Investors are not permitted to participate in the Offer through the ASBA Process. For further details, see “Offer Procedure” on page 443
All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.
About Company:
Originally incorporated in 1995 as ‘Hexacom India Limited’, the name of the Company was changed to ‘Bharti Hexacom Limited’ in 2004 when Airtel acquired a majority equity interest in this Company. Airtel is a global communications solutions provider with over 500 million customers in 17 countries across South Asia and Africa. It is among the top global mobile operators in terms of number of customers and is India’s largest integrated communications solutions provider in terms of consolidated operating revenue as of Fiscal 2023. (Source: CRISIL Report).
The Government of India through Telecommunications Consultants India Limited (“TCIL”) owns 30% of Bharti Hexacom Limited’s outstanding equity share capital. Let me introduce TCIL to you – TCIL is an engineering and consultancy company and was set up in 1978 for providing Indian telecom expertise in all fields of telecom and information technology to developing countries around the world. Its core competence is in the fields of switching, transmission systems, cellular services, rural telecommunication, optical fibre based backbone transmission systems, information technology and networking solutions, application software, e-Governance, 4G/5G, FTTH, VOIP, Wi-Fi surveillance, cyber security and civil construction and project management consultancy services.
Bharti Hexacom Limited is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband 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. It offers services under the brand ‘Airtel’.
Bharti Hexacom Limited is present in 486 census towns and had an aggregate of 27.1 million customers across both the circles, as of December 31, 2023. It has an extensive distribution and service network across the regions it operates in and during the nine months ended December 31, 2023 and the last three Fiscals, it set up 51 retail outlets and 24 small format stores to reach 90 cities, as of December 31, 2023. As of December 31, 2023, its distribution network comprised 616 distributors and 89,454 retail touchpoints.
Bharti Hexacom Limited had invested ₹ 206 billion in capital expenditure in future ready digital infrastructure as of December 31, 2023. It has established Leadership and large customer base in its areas of operations. It has presence in markets with growth potential. It has strong parentage and established brand. It has experienced management team.
Disclaimer:
BHARTI HEXACOM LIMITED is proposing, subject to, receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed the RHP dated March 22, 2024 with the RoC. The RHP is available on the website of the Company at https://www.bhartihexacom.in/docs/ipo/RHP.pdf, website of the SEBI at www.sebi.gov.in, as well as on the websites of the BRLMs, i.e. SBI Capital Markets Limited, Axis Capital Limited, BOB Capital Markets Limited, ICICI Securities Limited and IIFL Securities Limited at www.sbicaps.com, www.axiscapital.co.in, www.bobcaps.in, www.icicisecurities.com and www.iiflcap.com, respectively and the websites of National Stock Exchange of India Limited and BSE Limited atwww.nseindia.com and www.bseindia.com, respectively. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see “Risk Factors” of the RHP. Potential investors should not rely on the DRHP for making any investment decision. Specific attention of the investors is invited to “Risk Factors” beginning on page 35 of the RHP. The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold only (i) to persons in the United States that are “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act) in transactions exempt from or not subject to the registration requirements of the U.S. Securities Act in reliance on Rule 144A, and (ii) outside the United States in “offshore transactions” (as defined in Regulation S) in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales occur. There will be no public offering in the United States.
