Bharti Hexacom, a subsidiary of Bharti Airtel, made a spectacular debut on the stock market, leaving investors buzzing with excitement. Let’s delve into the details and explore whether you should buy, sell, or hold this newly listed stock.
The Dream Debut
- Listing Price : Bharti Hexacom’s shares were listed on both the BSE and NSE at a whopping 32% premium against the issue price of ₹542 to ₹570 per equity share1.
- Intraday High : Within minutes of listing, the share price surged to an intraday high of ₹824.90 on NSE and ₹824.70 on BSE1.
- Strong Response : Despite being a 100% Offer for Sale (OFS) issue, the IPO received a robust response from primary investors. Qualified Institutional Buyers (QIBs) subscribed 48.57 times, while Non-Institutional Investors (NIIs) subscribed 10.51 times1.
Expert Insights
- Long-Term Potential : Prashanth Tapse, Senior VP — Research at Mehta Equities, believes that Bharti Hexacom’s healthy listing is justified. The company’s extensive market coverage, prudent capital allocation, and focus on improving return on capital employed bode well for its long-term performance. Tapse recommends holding the stock for more upside1.
- Global Investor Confidence : Bharti Hexacom’s anchor book includes top global investors such as Capital Group, Fidelity, Blackrock, and ADIA. Their participation ahead of the IPO opening adds to investor confidence in the stock’s long-term prospects1.
- Market Position : The company holds the number one position in the highly competitive North-East circle and a formidable second position in the Rajasthan circle. This market dominance, coupled with prudent financial management, positions Bharti Hexacom for growth1.
Valuation and Recommendations
- Current Price : At the current price of ₹821, Bharti Hexacom matches its listed peers and trades at a premium to its parent company. Considering all parameters, Mehta Equities recommends holding the stock for the long term. Investors who wish to add more shares can wait for post-listing performance and accumulate on dips1.
- Medium to Long Term : Prathamesh Masdekar, Research Analyst at StoxBox, remains optimistic about the company’s performance going forward. He advises investors who received allotment to hold shares from a medium to long-term perspective1.
In conclusion, Bharti Hexacom’s dream debut has set the stage for exciting growth. While short-term volatility may occur, the company’s fundamentals and market position make it an attractive choice for patient investors. Whether you buy, sell, or hold depends on your investment horizon and risk appetite. Remember to consult with your financial advisor before making any decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research and seek professional guidance before investing.