Shares of Bharti Hexacom had a strong listing on the bourses on Friday. The stock, after listing with a premium of 32.45 per cent at ₹755.20 against the IPO price of ₹570, closed at ₹813.75, up 42.76 per cent over the issue price. On the NSE, the stock debuted at ₹755 and ended at ₹814, a jump of 42.80 per cent.
The company’s market capitalisation stood at ₹40,687.50 crore. While 20.94 lakh shares of the company were traded at the BSE, over 5.34 crore shares changed hands at the NSE. The stock sustained the rally even when the equity benchmark indices declined 1 per cent each.
The ₹4,275-crore Bharti Hexacom’s initial public offering saw a strong by subscribing nearly 30 times. The portion allocated for QIBs was subscribed 48.57 times, while the respective quota for non-institutional investors and retail investors was subscribed 10.52 times and 2.83 times.
The company’s IPO was an Offer For Sale (OFS) of 7.5 crore equity shares, indicating a 15 per cent stake by Telecommunications Consultants India Ltd.
Prashanth Tapse, Senior VP (Research), Mehta Equities, said: Despite 100 per cent OFS, Bharti Hexacom listed above street estimates. “Long-term investors got a great opportunity to hold mid-cap telecommunications solutions providers and to play long term India’s telecom structural ARPU growth story. Furthermore, Bharti Hexacom’s anchor book showcases top global investors such as Capital Group, Fidelity, Blackrock, and ADIA participating ahead of the opening of the IPO which give all other investors more comforts to block money for long term.”
However, Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said, inconsistencies in financial performance, coupled with a recent decline in profits, warrant ongoing monitoring. Also, the telecom sector is intensely competitive, demanding strategic innovation to maintain market share, he added.
“While the listing exceeded expectations, the pre-identified risks remain relevant. Existing investors may consider holding their shares, while new investors should closely monitor the company’s performance and market conditions before making a fresh entry,” he cautioned
JM Fin’s Buy signal
Meanwhile, JM Financial initiated coverage on Bharti Hexacom with a Buy rating and a TP of ₹790/share based on 10x FY26 EV/EBITDA. “Though higher multiple can be argued for BHL given 2-3 per cent higher EBITDA growth potential, we have used 10x multiple factoring in potential concentration risk due to BHL’s entire dependence on Rajasthan and NE circles and also on wireless business,” it said.
The stock could potentially double in 3-4 years on the back of 15-17 per cent EBITDA compounding story.
The company had raised ₹1,923.75 crore from anchor investors ahead of the issue. Among the marquee investors included Blackrock Global Funds, Pictet, Smallcap World Fund, Capital Group, American Funds, Fidelity Funds, and Abu Dhabi Investment Authority were among the anchor investors. Others were Stichting Depository APG, Aberdeen, Schroder International, Treasurer of the State of North Carolina Equity Investment Fund, BNP Paribas Trust Services Singapore, Eastspring Investments, Morgan Stanley and HSBC.