Bharti Airtel's arm Bharti Hexacom gets Sebi's approval to float IPO

Bharti Airtel's arm Bharti Hexacom has received capital markets regulator Sebi's nod to mobilise funds through an initial public offering (IPO).

The initial public offer will not have any fresh issuance of equity shares, and since it is an offer for sale or OFS, Bharti Hexacom will not receive any proceeds from the issue.

Under the OFS, 10 crore equity shares will be offloaded by Telecommunications Consultants India Ltd. The offer represents 20 per cent of the paid-up equity share capital of Bharti Hexacom.

In Sebi's parlance, obtaining the observation letter means its go-ahead to float the public issue.

Bharti Hexacom, which filed draft papers with the markets regulator in January, obtained its observation letter on March 11, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.

Bharti Hexacom provides telecommunication services in Rajasthan and the Northeast.

According to the company's website, Bharti Airtel holds 70 per cent of the equity share capital of the company and the government through Telecommunication Consultants of India Limited holds 30 per cent.

It is among the top global mobile operators in terms of number of customers and India's largest integrated communications solutions provider in terms of consolidated operating revenue as of fiscal 2023.

SBI Capital Markets Ltd, Axis Capital, BOB Capital Markets, ICICI Securities and IIFL Securities are the book-running lead managers to the issue.

The company's shares are proposed to be listed on the BSE and NSE.