Government may sell 15% stake in Bharti Hexacom in multiple chunks
government is considering to sell the remaining 15% stake in multiple tranches, and the Telecom Consultants India Limited (TCIL) would share proceeds of Bharti Hexacom’s debut initial public offering (IPO) as a special dividend.
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“Bharti Hexacom Limited (BHL) IPO has fetched Rs 4,275-crore from 15% stake sale of TCIL. The proceeds of IPO shall be paid as a special dividend from the profit of the company after deduction of taxes and expense as per the Company’s Act,” Sanjeev Kumar, Chairman, TCIL told ETTelecom.
Last week, Bharti Hexacom, a unit of Sunil Mittal-driven Bharti Airtel completed shares allotment to the investors following the public issue early this month.
The qualified institutional investors (QIB) showed an overwhelming response and the portion was oversubscribed by 48.57-fold.
“The investors have shown confidence in the growth story of the telecom sector. A right mix of price and issue size can attract investors’ interest and fetch better returns,” Kumar said.
The Ministry of Communications’ strategy to sell Bharti Hexacom stake in tranches, according to analysts, worked out well, and is set for a windfall gain for the government.
On Friday, Bharti Hexacom’s stocks were trading at more than Rs 950 on Bombay Stock Exchange (BSE).
The remaining 15% of stake, if valued at current price, may fetch more than Rs 7,000-crore, taking the total tally to nearly Rs 11,500-crore, surpassing the government’s expectation of Rs 9,500-crore
