Investors eyeing Bharti Hexacom Ltd's shares anticipate substantial listing gains today. The telecom and broadband services provider has seen a steady rise in its grey market premium since the bidding phase, with the latest premium hovering around Rs 95-100, suggesting a potential listing surge of 17-18% above the issue price of Rs 570 per share.
Market insiders emphasize retaining the stock for the long term, highlighting the company's robust business model, strong parentage, and sound financial standing. With an IPO valuation at 51 times P/E, analysts anticipate a moderate listing gain of approximately 15%, considering the current grey market premium.
Bharti Hexacom benefits from a large customer base, strong brand recognition, and an extensive distribution network, bolstered by its association with parent company Bharti Airtel. The New Delhi-based company successfully raised Rs 4,275 crore through its IPO, primarily through an offer-for-sale by Telecommunications Consultants India.
Amidst strong subscription demand, especially from qualified institutional bidders, the telecommunications-services provider witnessed an overall subscription of 29.88 times. With an optimistic outlook on the company's performance, analysts advise investors to hold shares from a medium to long-term perspective.
Bharti Hexacom's offerings include fixed-line telephone and broadband services across Rajasthan and the North East telecom circles in India, spanning states such as Rajasthan, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. Axis Capital, BoB Capital Markets, SBI Capital Markets, ICICI Securities, and IIFL Securities served as book running lead managers for the IPO, with Kfin Technologies as the registrar.
