Bharti Hexacom, a subsidiary of Bharti Airtel, successfully secured Rs 1,923.75 crore from anchor investors on April 2, just a day before its initial public offering (IPO) opens for bids. This marks the inaugural IPO of the new financial year FY25 and a significant milestone for the Bharti Group, marking its first IPO since the launch of Bharti Infratel in December 2012.
“The overwhelming response from our anchor investors underscores the confidence in Bharti Hexacom’s growth prospects and its position in the telecommunications sector,” said a spokesperson for Bharti Hexacom.
The 97 institutional investors that participated in the anchor book included prestigious names such as Blackrock Global Funds, Pictet, Smallcap World Fund, Capital Group, American Funds, Fidelity Funds, and Abu Dhabi Investment Authority.
“We believe Bharti Hexacom’s strategic focus on Rajasthan and North East telecom circles positions it for strong performance in the evolving telecommunications landscape,” commented a representative from Blackrock Global Funds.
Stichting Depository APG, Aberdeen, Schroder International, Treasurer of the State of North Carolina Equity Investment Fund, BNP Paribas Trust Services Singapore, Eastspring Investments, Morgan Stanley, and HSBC also featured among the anchor investors.
“Our investment in Bharti Hexacom reflects our commitment to opportunities that demonstrate robust potential for value creation,” stated a spokesperson from Morgan Stanley.
Domestic fund houses, including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, Axis Mutual Fund, Kotak Mutual Fund, Nippon Life India, Mirae Asset, UTI Mutual Fund, Franklin, Tata Mutual Fund, DSP Mutual Fund, Whiteoak Capital, Sundaram Mutual Fund, Bandhan Mutual Fund, and PGIM India, contributed significantly to the anchor book.
“Our investment in Bharti Hexacom aligns with our strategy of identifying and participating in high-growth opportunities in the Indian market,” commented a representative from SBI Mutual Fund.
Leading insurance companies such as ICICI Prudential Life Insurance Company, SBI Life Insurance, HDFC Life Insurance, Kotak Mahindra Life Insurance, Bajaj Allianz Life Insurance, Canara HSBC Life Insurance, and Tata AIA Life Insurance also joined the ranks of anchor investors.
“We see Bharti Hexacom as a promising player in the telecommunications sector, and our investment reflects our confidence in its future growth trajectory,” said a spokesperson from ICICI Prudential Life Insurance Company.
The Bharti Hexacom IPO is scheduled to open for subscription on April 3, with a price band set at Rs 542-570 per share, and will conclude on April 5.
“We are excited about the opportunity to bring Bharti Hexacom to the public markets, and we are confident that investors will recognize the value proposition it offers,” remarked a spokesperson from Bharti Hexacom.
The company aims to mobilize Rs 4,275 crore from the public issue, which comprises solely of an offer-for-sale (OFS) by the Telecommunications Consultants India.
“We are pleased with the response from anchor investors, and we look forward to a successful IPO that will enable us to further strengthen our position in the telecommunications sector,” stated a representative from Telecommunications Consultants India.
Promoter Bharti Airtel holds a 70 percent stake in Bharti Hexacom, while up to 75 percent of shares in the IPO have been reserved for qualified institutional investors, 10 percent for retail investors, and the remaining 15 percent for non-institutional investors.
“We are committed to driving value for our stakeholders, and the IPO of Bharti Hexacom represents a significant step in this direction,” said a spokesperson from Bharti Airtel.
