will they offer strong popularity for listing? – .

Bharti Hexacom Ltd shares could generate decent trading gains for investors later today. The gray market premium for the telecom and broadband service provider has gradually increased since the auction was opened.

Bharti Hexacom last commanded a premium of Rs 95-100 in the gray market, suggesting a listing hike of 17-18 per cent over the issue price of Rs 570 per share. The premium in the unofficial market stood at Rs 80-85 a day ago, while it was Rs 65 apiece when the issue was opened for public auction.

Market participants expect the stock to deliver a double-digit yield, in line with the gray market premium. They advised investors to hold the stock for the long term, given the company’s robust business model, strong ties and healthy financial position.

“Bharti Hexacom is expected to debut on the stock exchanges with a moderate listing gain of around 15 per cent from the issue price, as signaled by its current gray market premium (GMP),” said Shivani Nyati, head of wealth management at Swastika Investmart.

The IPO’s valuation of 51 times P/E appears to have been fully valued, leaving limited room for immediate gains post-listing, she said.

Bharti Hexacom leverages a large customer base, strong brand recognition and an extensive distribution network to operate in high-growth Markets. Additionally, the company benefits from its association with its supportive parent company, Bharti Airtel, Nyati added.

The New Delhi-based company sold its IPO in the Rs 542-570 price band. The company managed to raise Rs 4,275 crore through its stake sale, which consisted entirely of an offer for sale of up to 7,50,00,000 shares by Telecommunications Consultants India.

“We expect Bharti Hexacom to be listed at a healthy 10-12 per cent above its issue price, given the current optimistic bullish trend in the markets, as well as healthy subscription demand ”, said Prashanth Tapse, senior vice president of research at Mehta Equities. “We recommend designated investors to ‘hold’ them only for a long-term perspective,” he said.

The telecommunications service provider saw a strong response to its IPO, garnering an overall subscription of 29.88 times. The quota of qualified institutional bidders was subscribed 48.57 times while that of non-institutional bidders was subscribed 10.52 times. The portion reserved for individual investors was subscribed 2.83 times.

“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 offers landline and broadband services to customers in Rajasthan and North East telecom circles of India. Its service footprint extends to states such as Rajasthan, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.

The lead book managers for the Bharti Hexacom IPO included Axis Capital, BoB Capital Markets, SBI Capital Markets, ICICI Securities and IIFL Securities, with Kfin Technologies acting as the registrar for the issue.