Bharti Hexacom IPO gets SEBI nod in FY25: 10 crore OFS

SEBI clears Bharti Hexacom’s draft papers

Bharti Hexacom, a Bharti Airtel subsidiary, has received the Securities and Exchange Board of India’s (SEBI) go-ahead for its initial public offering (IPO) plans, as reported by multiple media outlets. The approval came through an “observation letter” issued on March 11. In SEBI’s terminology, an observation letter indicates the issuer is eligible to launch the IPO within the next one-year period. The development moves Bharti Hexacom closer to a public listing on India’s main exchanges. The company operates telecom services under the Airtel brand. Its key operating circles are Rajasthan and the North East.

What the IPO structure looks like

The proposed IPO is entirely an offer for sale (OFS) with no fresh issue of equity shares. The seller is Telecommunications Consultants India Ltd (TCIL), described in reports as the only public shareholder and also the non-promoter shareholder. TCIL is set to offload 10 crore equity shares in the offering. Because there is no fresh issue, Bharti Hexacom will not receive any proceeds from the IPO. The entire issue proceeds, excluding IPO-related expenses, will go to the selling shareholder. One report also noted that the OFS represents 20% of Bharti Hexacom’s paid-up equity share capital.

Shareholding: Bharti Airtel at 70%, TCIL at 30%

Disclosures cited from the draft red herring prospectus (DRHP) state Bharti Airtel holds a 70% stake in Bharti Hexacom. This stake corresponds to 35 crore equity shares. The remaining 30% is held by TCIL, equating to 15 crore equity shares. Reports also describe TCIL’s holding as the government’s stake through Telecommunications Consultants of India Limited. The IPO therefore primarily enables partial monetisation of TCIL’s position. Another detail reported is that Airtel is not selling shares as part of this OFS.

Filings and key dates investors should track

Bharti Hexacom filed its DRHP with SEBI in January 2024, as cited in the coverage. SEBI’s observation letter was issued on March 11, which is effectively the regulator’s clearance for the public issue. The story also notes publication timing around March 20, 2024. While the approval is a key milestone, a confirmed launch schedule was not uniformly stated across the reports. One report suggested the IPO could likely arrive in the first week of April, but this was presented as a possibility rather than an announced date. Investors are still waiting for final details such as the price band and other offer specifics.

Where Bharti Hexacom operates under the Airtel brand

Bharti Hexacom provides consumer mobile services, fixed-line telephone, and broadband offerings. Its operations are concentrated in Rajasthan and the North East telecom circle. The North East circle was detailed as including Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. Concentration in two circles makes the business profile different from pan-India telecom operators, but it remains part of the broader Airtel ecosystem. One report said the company aims to cover all urban areas and some pockets of rural areas with 5G services by March 2024.

Early bidding: muted demand on Day 1

Bharti Hexacom’s IPO received a lukewarm response on the first day of bidding, with 34% subscription reported for Day 1. The issue was described as the first public issue of the financial year 2024-25. This initial subscription data is an early indicator of demand, but it does not capture how bidding typically evolves across the full IPO window. Investors commonly track category-wise subscription, pricing, and overall market sentiment during the offer period, though those details were not provided in the supplied text.

Deal size and valuation talk reported in the market

A CNBC-TV18 report cited in the supplied text said the IPO could seek a valuation of over ₹28,000 crore. The same report added that the IPO size could be around ₹4,300 crore. These figures were framed as reported expectations rather than confirmed offer terms from the company. Since the IPO is a pure OFS, the size largely reflects the value of shares being sold by TCIL, subject to final pricing. Investors typically watch for the final price band and the exact offer size in the updated offer documents.

Book runners, registrar, and where the shares may list

Several reports named the book-running lead managers (BRLMs) for the issue. The BRLM list includes SBI Capital Markets, Axis Capital, BOB Capital Markets, ICICI Securities, and IIFL Securities (also referred to as IIFL Capital Services in one version). Kfin Technologies Limited was reported as the registrar to the issue. The company’s shares are proposed to be listed on both BSE and NSE, according to the supplied coverage. These appointments and listing plans are standard parts of the IPO process and help investors identify the key intermediaries.

Key facts at a glance

Why the structure matters for investors

Because the IPO is fully an OFS, the company itself does not raise fresh capital through the listing, as explicitly stated in the reports. That makes the offer primarily a shareholder exit or stake reduction for TCIL, rather than a fundraise to finance new projects. At the same time, a listing can still change how the market values the business and how investors track its performance. The supplied coverage also framed the IPO as “value unlocking,” while noting that there is no direct flow of funds to Bharti Airtel from the sale proceeds. The next key data points for investors remain the final IPO date, price band, and issue details once announced.

What to watch next

SEBI’s observation letter gives Bharti Hexacom a window to launch the IPO within a year. The company is yet to announce the price band and final issue terms in the supplied text. Investors will also watch for final offer documents and the timetable for the book-building process. Market participants may also track how subscription builds beyond Day 1, given the reported 34% subscription on the first day. Any further company announcements on the IPO schedule will likely be the next trigger for investor focus.