India's Bharti Hexacom IPO receives bids worth over $8 billion

India's Bharti Hexacom IPO receives bids worth over $8 billion

By Rama Venkat

Indian telecom operator Bharti Hexacom received bids worth 702.51 billion rupees ($8.43 billion) in its initial public offering, outpacing its offer size of 42.75 billion rupees, exchange data showed on Friday.

Investors bid for 1.23 billion shares at a price range of 542 to 570 rupees per share, which was 29.88 times more than the 41.2 million shares offered, data from the National Stock Exchange of India showed.

"Looking at the demand for the IPO, expecting Hexacom to list at a 15% premium is not expecting too much," Arun Kejriwal, founder of Kejriwal Research and Investment Services, told Reuters.

The company, 70% owned by India's No. 2 telecom operator Bharti Airtel, is set for its market debut on April 12.

India has seen 64 companies raise $2.31 billion cumulatively through IPOs so far in 2024, compared with $170.6 million from 42 offerings in the same period last year, according to LSEG data.

Bankers expect the momentum to persist amid rapid economic growth and expectations of political stability as the general elections start later this month.

Government-owned entity Telecommunications Consultants India offered to sell 75 million shares, representing half of its 30% stake in Bharti Hexacom. It did not issue fresh shares in the IPO.

Bharti Hexacom offers consumer mobile services, fixed-line telephone and broadband services under the brand "Airtel" in the northwestern state of Rajasthan and some parts of northeastern India.