Bharti Hexacom Makes Strong Market Debut With 32% Premium

Bharti Hexacom made a robust entry on the bourses on Friday after the shares of the telecom operator listed at Rs 755 price level, a 32 per cent premium from its initial price of Rs 570 per share on the BSE.

The telecom firm provides communication solutions, including mobile, fixed, and broadband services, to customers in Rajasthan and the North Eastern states in the domestic region. The initial public offering (IPO) which was valued at Rs 4,275 crore, received strong investor interest with subscriptions nearly reaching 30 times its allotted quota.

At 11:00 am, the shares of the telecom service provider were trading at Rs 805 price level, up by 235 points or 41 per cent on the National Stock Exchange.

"Long term investors got a great opportunity to hold mid-cap telecommunications solutions providers and to play long term India’s telecom structural ARPU (Average Revenue Per User) 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," said Bharti Hexacom by Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

While the parent company's brand name could be a reassuring factor for investors, concerns may arise around the telecom company's past financial performance figures.

Shivani Nyati, Head of Wealth, Swastika Investmart Ltd. believes that the company operates in high-growth markets, which may have attracted investors seeking long-term value.

"However, 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," she said.