Bharti Airtel’s Strategic Move: Bharti Hexacom IPO and Government Exit Plan Unveiled

Bharti Airtel Plans Bharti Hexacom IPO:
– Bharti Airtel is gearing up for an initial public offering (IPO) of its subsidiary, Bharti Hexacom.
– This move is part of an exit strategy for Telecom Consultants of India Ltd (TCIL), which currently holds a 30% stake in Bharti Hexacom.

Valuation and Listing Schedule:
– The anticipated valuation for Bharti Hexacom is Rs 20,000 crore.
– The listing process is scheduled to conclude by early 2024.

Offer for Sale (OFS):
– Bharti Hexacom announces an Offer for Sale (OFS) of up to 100 million shares.
– The board has approved the IPO of subsidiary Bharti Hexacom.

Ownership Structure:
– Bharti Airtel holds a 70% stake in Bharti Hexacom, while the remaining 30% is owned by the Government of India.

Exit Strategy for Government:
– The Bharti Hexacom IPO aims to provide an exit for the government, which currently owns a 30% stake in the subsidiary.

Details of IPO:
– The IPO will be an Offer for Sale (OFS) of 10 crore shares, representing a 20% stake.
– Bharti Hexacom has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

Operational Focus:
– Bharti Hexacom primarily operates in the Rajasthan and North-East circles.