Bharti Airtel’s subsidiary Bharti Hexacom has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO will be completely offer-for-sale (OFS) of up to 100 million equity shares by its existing shareholders. The government, through Telecommunications Consultants India Limited (TCIL), will offload a 20 per cent stake out of the 30 per cent it currently holds in the company. Airtel has the remaining 70 per cent share.
According to an exchange filing by the company, Airtel’s board of directors has approved the IPO of equity shares of face value Rs 5 each comprising an OFS of up to 100,000,000 equity shares (representing 20 per cent of the paid-up share capital of the company) by TCIL, subject to such variation as permitted under applicable law.
In its exchange filing, the company added that the IPO would not include any fresh issuance of equity shares and would be carried out subject to the necessary approvals and market conditions. The company will not get any proceeds from the IPO because it is an OFS.
