Bharti Hexacom IPO: A Comprehensive Overview
Bharti Hexacom, a telecommunications and internet services provider, is preparing to go public by launching its Initial Public Offering (IPO) on April 3rd, with the subscription period extending until April 5th. In this IPO, the company plans to sell a portion of its ownership to the public in the form of shares. The price range for each share has been set between ₹542 to ₹570, with each share having a face value of ₹5. This means that investors will need to pay between 108.40 and 114 times the face value for each share they buy, which indicates the price-to-earnings ratio.
The IPO coincides with the start of the new fiscal year 2024–2025, signifying a significant milestone for Bharti Hexacom. Before the IPO opens to the public, a portion of the shares will be allocated to anchor investors on April 2nd. The allocation of shares is structured in such a way that 75% of the shares are earmarked for qualified institutional buyers, typically large financial institutions. Non-institutional investors, comprising a smaller group of individuals and corporations, are allocated 15% of the shares, while retail investors, including individual investors, have access to 10% of the shares.
Potential investors should carefully consider several key factors before deciding to participate in the IPO. These include the specific dates of the IPO, the price range of the shares being offered, the overall size of the IPO, the minimum number of shares investors can purchase (known as the lot size), information about the company’s promoters (in this case, Bharti Airtel), the anticipated date when shares will be allotted to investors, and the expected listing date when shares will become tradable on the stock exchanges.
Furthermore, it’s important to be aware of the entities managing the IPO process, known as book-running managers, which include SBI Capital Markets Limited, Axis Capital Limited, Bob Capital Markets Limited, ICICI Securities Limited, and IIFL Securities Ltd. Additionally, the registrar responsible for overseeing the administrative aspects of the IPO is Kfin Technologies Limited.
Lastly, investors may also consider the grey market premium (GMP), which reflects the difference between the IPO price and the unofficial market price at which shares are traded before their official listing. As of now, the GMP for Bharti Hexacom shares stands at ₹37.
Considering these factors can provide potential investors with valuable insights to make informed decisions regarding their participation in the Bharti Hexacom IPO.
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