The Union Government anticipates earning about Rs 10,000 crore from the possible sale of its 30 per cent ownership in Bharti Hexacom, which is rumoured to be in the process of going public, according to a top official who spoke with ET.
Bharti Hexacom, which provides mobile services in Rajasthan and the Northeast, is 70 per cent owned by Bharti Airtel. Through Telecommunications Consultants India Ltd (TCIL), a state-owned telecom engineering and consulting company with business interests abroad, especially in pan-African and West Asian markets, the government holds a 30 per cent investment in Bharti Hexacom.
Sunil Mittal-led Bharti Airtel is thought to have begun the process of listing Bharti Hexacom, which is valued at over Rs 30,000 crore, in order to provide the government with a whole or partial exit option.
To begin the IPO process, a number of investment banks, including Axis Capital, SBI Caps, IIFL, and ICICI Securities, have reportedly been picked by Airtel. The listing is probably going to be finished by early 2024.
Experts in the field have stated that the government's projected earnings of approximately Rs 10,000 crore from the possible sale of its 30 per cent share in Bharti Hexacom are more than three times greater than a previous assessment made about two years ago by the brokerage J M Financial.
According to the sources that spoke with ET, Airtel is expected to keep its 70 per cent ownership in Bharti Hexacom.
The final offer price for Bharti Hexacom's IPO is expected to be determined through a book-building process and the publication of a prospectus, according to the sources.
