Even before its listing, JM Financial initiated coverage on the stock with a target price of Rs 790 apiece, suggesting an upside potential of 39 per cent from its issue price. 
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Even before its listing, JM Financial initiated coverage on the stock with a target price of Rs 790 apiece, suggesting an upside potential of 39 per cent from its issue price. Shares of Bharti Hexacom Ltd made a strong debut at Dalal Street on Friday as the stock was listed at Rs 755.20 a price on BSE, a premium of 32.49 per cent over the issue price of 570 per share. Similarly, the stock kicked-off its maiden trading session at a premium of 32.46 per cent at Rs 755 on NSE.
The listing of Bharti Hexacom can be assumed better than expectations, amid sour market sentiments. Ahead of its listing, the company was commanding a grey market premium of Rs 120-125 apiece, signaling a listing pop of 22-23 per cent the investors. However, the premium in the unofficial market was steadily moving higher since the closure of the issue.
Even before its listing, JM Financial initiated coverage on the stock with a target price of Rs 790 apiece, suggesting an upside potential of 39 per cent from its issue price. Its FY24-26 EBITDA CAGR could be higher at 17 per cent due to presence in high growth potential markets and relatively lower penetration of high ARPU postpaid and data subs, it said.
"India wireless ARPU is on a structural uptrend given the consolidated industry, and as industry needs ARPU to rise to Rs 275-300 in 3-4 years to meet future capex needs. We expect BHL’s ARPU to grow at 10 per cent CAGR, consisting of 6-7 per cent ARPU CAGR due to regular tariff hikes; and 3-4 per cent ARPU CAGR due to Bharti Airtel’s premiumization strategy," said JM Financial.
New Delhi-based Bharti Hexacom conducted its IPO within a price range of Rs 542-570 per share, with a lot size of 26 equity shares. The company successfully raised Rs 4,275 crore through its primary stake sale, which consisted entirely of an offer-for-sale of up to 7,50,00,000 equity shares by Telecommunications Consultants India.
The telecommunications-services provider witnessed a strong response to its IPO, fetching an overall subscription of 29.88 times. Qualified institutional bidders oversubscribed their quota by 48.57 times, while non-institutional bidders saw a subscription rate of 10.52 times. However, the portion reserved for retail investors was subscribed only 2.83 times by the close of bidding.
Bharti Hexacom offers fixed-line telephone and broadband services to clientele across Rajasthan and the North East telecom circles in India. Its service footprint extends to states including Rajasthan, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
The book running lead managers for the Bharti Hexacom IPO included Axis Capital, BoB Capital Markets, SBI Capital Markets, ICICI Securities, and IIFL Securities, with Kfin Technologies serving as the registrar for the issue.
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