Bharti Airtel kicks off process for Bharti Hexacom IPO, eyes Rs 20,000 crore valuation: Report

Bharti Airtel has reportedly started the process for an initial public offer (IPO) of its subsidiary Bharti Hexacom. Bharti Airtel, which owns 70 per cent stake in the arm, is likely to list it by early 2024, as per a report by CNBC TV18. The telecom operator is believed to have appointed investment bankers for the IPO and is expecting a valuation of around Rs 20,000 crore.

The government of India through Telecommunication Consultants of India Limited (TCIL) owns the rest 30 per cent of the equity share capital of the company. Incorporated on April 20, 1995, Bharti Hexacom is engaged into telecommunication business in Rajasthan and North East Circle.

As per the company's website, it the largest mobile telephony services in Rajasthan and North Eastern regions, which also offers fixed line and broadband services in Rajasthan.

In its FY23 annual report, the Bharti Airtel arm reported a positive growth in income, which was majorly attributed to increase in revenue. The revenue and Ebitda for the year ended March 31, 2023 stood at Rs 6,719.20 crore and Rs 2,925.90 crore, respectively. This was against revenue of Rs 5,494 crore and Rs 1,902.80 crore in the year ended March 31, 2022.

Bharti Hexacom, as per its annual report, is targeting to cover all the urban areas and a few pockets of rural areas with 5G services by March 2024. Airtel’s 5G Plus offers up to 30 times faster download speeds than 4G, it claimed in its annual report adding that the 5G handset ecosystem is gradually evolving with more choices for customers at affordable price points.

"In comparison to last year, the credit rating of the Company has remained the same i.e. “AA+/Stable” for the Debentures issued by the company. The instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligation. Such instruments carry very low credit risk. Further, CRISIL and India Research have maintained a rating of “A1+” for the commercial papers issued by the company," it said in its annual report.

Shares of Bharti Airtel were trading at Rs 969.10 in Wednesday's trade, down 0.24 per cent.

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