Bharti Hexacom IPO Shares to Debut in D-St on Wednesday; here’s what GMP reports – .

Bharti Hexacom shares are all set to make their debut on Dalal Street on Wednesday and if gray market signals are anything to go by, the company is all set to offer a decent listing to investors. The premium on the unofficial market has increased since the bidding process closed.

Bharti Hexacom last commanded a premium of Rs 95-100 in the gray market, suggesting a 17-18 per cent quoting by investors over the given issue price. The premium in the unofficial market stood at Rs 80-85 around 24 hours ago, while it was Rs 65 apiece when the issue was opened for bidding.

Market participants believe that the stock could offer a decent double-digit premium, in line with signals given by the gray market premium. However, they believe investors should hold the stock for the long term given the robust business model, strong lineage and financial strength.

Bharti Hexacom’s IPO received a strong response as investors became more aggressive in seizing the mid-sized telecom growth story, said Prashanth Tapse, senior vice president of the research, Mehta Equities. “Given the current optimistic bullish trend in the Markets, along with healthy subscription demand, we expect Bharti Hexacom to price at a healthy 10-12 percent above its issue price.” , did he declare.

The relationship between Bharti Hexacom and Airtel exhibits compelling synergy, leveraging the strength of the Airtel brand, diversity of service offerings and focus on sustainability to drive sustained market growth. Therefore, considering all parameters, we recommend investors to ‘hold’ these securities from a long-term perspective only,” he said.

New Delhi-based Bharti Hexacom sold its IPO in the price band of Rs 542-570 per share with a lot of 26 equity shares. The company raised Rs 4,275 crore through its primary stake sale, which was entirely an offer for sale of up to 7,50,00,000 shares by Telecommunications Consultants India.

The telecommunications service provider received a positive reception for its IPO, with an overall subscription of 29.88 times. The quota for qualified institutional bidders was subscribed 48.57 times while the allocation for non-institutional bidders was reserved 10.52 times. The portion reserved for individual investors was only subscribed 2.83 times at the end of the offer.

Bharti Hexacom is expected to be listed at a decent premium, around 15 per cent, following strong oversubscription figures, said Prathamesh Masdekar, research analyst at StoxBox. “We remain optimistic about the future performance of the company and advise investors who have received an allocation to hold shares with a medium to long term perspective,” he said.

Bharti Hexacom enjoys extensive market coverage and penetration. Furthermore, one of the key areas of focus is prudent allocation of capital and enhancement of return on capital employed, which is reflected in both on-spectrum and off-spectrum capital expenditures, a Masdekar said.

Bharti Hexacom, established in 1995, provides landline and broadband services to customers in Rajasthan and North East telecom circles of India. The company provides services in states such as Rajasthan and Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.

Axis Capital, BoB Capital Markets, SBI Capital Markets, ICICI Securities and IIFL Securities are the lead managers of the Bharti Hexacom IPO, while Kfin Technologies is the issue registrar.