In order to move forward with its IPO plans, Bharti Hexacom files a DHRP with SEBI

In order to go forward with the plans for an IPO (initial public offering), Bharti Hexacom filed a draft red herring prospectus (DHRP) with the Securities and Exchange Board of India (SEBI) on January 19, 2024. The Indian government wishes to sell its ownership interest in the business. For those who don't know, Bharti Airtel controls 70% of the business, with the government-owned Telecommunications Consultants India holding the remaining 30%. Bharti Hexacom won't receive any new funding from this IPO since there won't be any new share issues. Telecommunications Consultants India merely wishes to divest itself of its portion.

Twenty percent of the government's thirty percent ownership in the corporation is up for grabs.

In an exchange filing at the National Stock Exchange (NSE), Bharti Airtel stated, "We would like to notify you that the Board of Directors of the Company, at its meeting held on Friday, January 19, 2024, has approved the IPO of equity shares of face value Rs 5 each ("Equity Shares") comprising an Offer for Sale ("OFS") of up to 100,000,000 Equity Shares (representing 20% of the paid-up share capital of the Company) (the "Offer") by Telecommunications Consultants India Limited, subject to such variation as permitted under applicable law."

As previously stated, the IPO will yield no proceeds for the company. It is merely an OFS (Offer for Sale). Mobile services are provided by Bharti Hexacom in the country's Northeast and Rajasthan regions. Following the share sale, Bharti Airtel will continue to hold the majority of the stock.

"The IPO will be carried out subject to necessary clearances and market conditions, and it will not involve the issue of any new equity shares. The filing stated, "As an OFS, the company will not receive any proceeds from the IPO."