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Airtel’s arm Bharti Hexacom files draft for a proposed IPO

Bharti Airtel’s (Airtel) wholly-owned subsidiary Bharti Hexacom has filed a draft red herring prospectus (DRHP) for a proposed initial public offering (IPO) that entails an offer of sale (OFS) by Telecommunications Consultants India.

The IPO will not have any fresh issuance of equity shares and since it is an OFS, Bharti Hexacom will not receive any proceeds from the IPO, the company said in a regulatory filing on Saturday.

Board approval

“The Board of Directors of the company at its meeting held on Friday, January 19, has approved the IPO of equity shares of face value ₹5 each comprising of an offer for sale of up to 10 crore equity shares by Telecommunications Consultants India Ltd, subject to such variation as permitted under applicable law,” it said in the BSE filing.

Accordingly, the company has filed a DRHP on Friday with SEBI, for a proposed IPO for the offer by Telecommunications Consultants India. The offer represents 20 per cent of the paid-up equity share capital of Bharti Hexacom, it said.

It further clarified, “The IPO shall not have any fresh issuance of equity shares and will be undertaken subject to requisite approvals and market conditions. Being an OFS, the company will not receive any proceeds from the IPO.”

Bharti Hexacom provides telecommunication services in Rajasthan and the North-East. Airtel holds 70 per cent of the equity share capital of the company and the government, through Telecommunication Consultants of India, holds 30 per cent.

Shares of Airtel closed at ₹1,123 apiece on Saturday, down 0.18 per cent from the previous close. The company will be announcing its third quarter results for this financial year on February 5.

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