April 9, 2024 / 12:15 PM (IST)
Sensex Today | Prashanth Tapse, Senior Vice President (Research), Mehta Equities
Despite 100% OFS, Bharti Hexacom IPO saw solid response on last day of issue bid with QIB (48.57x) and NII (10.51x) investors becoming more aggressive to grab the growth story of mid-cap telecom However, interest from individual investors who only made bids subsequently waned. 2.81 times the allocated slot. Overall, he was oversubscribed 29.87 times.
Considering the current optimistic upward trend in the market and healthy subscription demand from all investors, Bharti Hexacom’s issue price is expected to be 10-12% higher at Rs 570.
A healthy listing of around 10-12% is justified as this is a great opportunity for long-term investors to own a mid-sized telecom solution provider and play a role in the long-term growth story of India’s telecom structure ARPU. Additionally, Bharti Hexacom’s anchor book showcases the participation of the world’s top investors such as Capital Group, Fidelity, BlackRock, and ADIA ahead of the launch of his IPO, and all other investors gives more security for blocking funds in the long term.
In the valuation analysis at the upper limit of 570 rupees, the question was whether the market capitalization would reach 570 rupees. 28,500/-cr, and based on annualized earnings for FY2024, the company was demanding a P/E ratio of 76x. This seems like the offer has fully factored in near-term growth factors when compared to its peers, which is around 63x even its parent company Bharti Airtel. . Investors should also keep an eye on his IPO offer with 100% OFS i.e. Rs.4275/-cr issue, which is a concern for new investors. However, the relationship between Bharti Hexacom and Airtel offers attractive synergies, leveraging Airtel’s brand strength, diversified service offering and focus on sustainability to drive sustainable growth in the market. Therefore, considering all the parameters, we recommend that allotted investors “hold” Bharti Hexacom Ltd only from a long-term perspective, while investors who wish to add a listing date You can wait for the performance after listing and accumulate when there is a push.
