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What You Need to Know About the Bharti Hexacom Limited IPO?

Updated: Apr 4

Company

Communications Solutions Provider

Founded

April 1995

Services

Mobile, Fixed Line & Broadband

Brand

Airtel

Regions

Rajasthan & North Eastern India (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura)

Website








Bharti Hexacom Limited IPO

Bharti Hexacom IPO Details are as follows:




Field

Details

IPO Issue Opening Date

3rd Apr 2024

IPO Issue Closing Date

5th Apr 2024

IPO Issue Price

₹542.00-570.00 Per Share

IPO Listing At

BSE, NSE

Retail Quota

10% of the whole issue

IPO Issue Type

Book Build Issue

IPO Issue Size

₹4275.00 Cr

Offer for Sale

₹4275.00 Cr

Face Value

₹5 Per Equity Share



Important dates:

Event

Date

Issue Open Date

April 3, 2024

Issue Closing Date

April 5, 2024

Allotment of Shares

Expected April 8, 2024

Initiation of Refunds

Expected April 10, 2024

Credit of Shares to Demat Account

Expected April 10, 2024

Tentative Listing Date

April 12, 2024


Minimum Investment

Lot Size (Shares)

Cost per Lot (approx.)

₹14,820

26

₹14,820 - ₹15,330 (price band: ₹542 - ₹570)




Bharti Hexacom Limited

Company

Communications Solutions Provider

Founded

April 1995

Services

Mobile, Fixed Line & Broadband

Brand

Airtel

Regions

Rajasthan & North Eastern India (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura)

Website

Business Strategy

  • Attract & retain high-value customers

  • Enhance customer experience through omnichannel approach & data science

  • Offer differentiated plans (Airtel Black Proposition)

  • Improve profitability through cost optimization

  • Maintain a healthy financial structure



Distribution Network (as of Sep 30, 2023)

  • Retail Stores: 18 (Large) + 8 (Small) - Reaching 88 Cities (past 6 months)

  • Dealers: 617

  • Retail Locations: 88,586



IPO Objective

  • Sell 750 million shares by the existing shareholder

  • Gain benefits of being listed on stock exchanges (BSE & NSE)


Financial Information of Bharti Hexacom Limited IPO

Period Ended

31 Dec 2023

31 Mar 2023

31 Mar 2022

31 Mar 2021

Assets

19,603.00

18,252.90

16,674.30

15,003.50

Revenue

5,420.80

6,719.20

5,494.00

4,704.30

Profit After Tax (PAT)

281.80

549.20

1,674.60

-1,033.90

Net Worth

3,978.80

3,972.20

3,573.20

1,898.70

Reserves and Surplus

4,166.10

3,959.50

3,410.50

1,736.00

Total Borrowing

6,253.00

6,269.30

7,198.30

5,975.20



The provided table contains financial information for Bharti Hexacom Limited for the period ending March 31, 2023, compared to the previous two fiscal years. Let's break down the key items:

  • Assets: These represent the company's total resources, including cash, inventory, property, and equipment. In this case, Bharti Hexacom's assets increased from ₹16,674.30 Crore as of March 31, 2022, to ₹18,252.90 Crore as of March 31, 2023.

  • Revenue: This reflects the income generated from the company's core business activities. Bharti Hexacom's revenue increased by 22.3% year-over-year, from ₹5,494.00 Crore to ₹6,719.20 Crore.

  • Profit After Tax (PAT): This is the net profit remaining after accounting for all expenses and taxes. Although revenue grew, Bharti Hexacom's PAT significantly decreased by 67.2% year-over-year, from ₹1,674.60 Crore to ₹549.20 Crore. This suggests that the company's profitability has declined despite the increase in revenue.

  • Net Worth: This represents the shareholders' equity, calculated as the difference between total assets and total liabilities. Bharti Hexacom's net worth remained relatively stable at ₹3,972.20 Crore as of March 31, 2023.

  • Total Borrowing: This indicates the company's total outstanding debt. Bharti Hexacom's total borrowing slightly decreased from ₹7,198.30 Crore to ₹6,269.30 Crore.





Key Observation:

While Bharti Hexacom's revenue growth is positive, the significant decline in PAT raises a concern. This could be due to several factors, such as rising operational costs, increased competition, or non-recurring expenses. Investors should delve deeper into the financial statements to understand the reasons behind the drop in profitability.



Limitations:

It's important to note that this analysis is based on a limited set of financial data for three years. A more comprehensive understanding of the company's financial health would require analyzing additional financial ratios and trends over a longer period.

Do your analysis before investing into the Bharti Hexacom Limited IPO.





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