Capital markets regulator Sebi has given the go-ahead for Bharti Airtel’s subsidiary Bharti Hexacom to raise money through an initial public offering (IPO). Since the IPO is an offer for sale, or OFS, Bharti Hexacom will not receive any revenues from the sale and there won’t be any new equity share issuance during the IPO.
Under the OFS, Telecommunications Consultants India Ltd. will dispose 10 crore equity shares. Twenty percent of Bharti Hexacom’s paid-up equity share capital is represented by the offer. To borrow Sebi’s language, receiving the observation letter signifies that the public matter can now be raised.
Bharti Hexacom received its observation letter on March 11 after submitting draft documents to the markets regulator in January, according to an update provided by the Securities and Exchange Board of India (Sebi) on Tuesday.
The website of the corporation states that Bharti Airtel possesses 70% of the equity share capital, while Telecommunication Consultants of India Limited, on behalf of the government, retains the remaining 30%.
As of fiscal 2023, it ranked among the top mobile operators worldwide in terms of consumers, and in terms of consolidated operating revenue, it was the leading provider of integrated communications solutions in India.
The issue’s book-running lead managers are SBI Capital Markets Ltd., Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities. It is suggested that the corporation list its shares on the BSE and NSE.
