Telecommunications Consultants India Limited (TCIL) is planning to sell its stake in Bharti Hexacom in two tranches of 15% each to meet a target set out by the Central Government.
As per a senior official of the central Public Sector Undertaking (PSU) Telecommunications Consultants India Limited, the company is going forward as per the strategy to meet the target set out by the Indian government. Telecommunications Consultants India Limited will sell only a 15% stake in Bharti Hexacom now and another 15% at an opportune time within the next six months.
Bharti Hexacom Limited is a wholly-owned subsidiary of the telecom giant Bharti Airtel Limited. It is involved in the telecommunication business in the North East and Rajasthan Circle. In FY 2023, Bharti Hexacom Limited reported a net profit of ₹549.2 crore.
On Tuesday, March 19, 2024, Bharti Hexacom got approval for an Initial Public Offering (IPO) from the Securities and Exchange Board of India (SEBI). As per the Draft Red Herring Prospectus (DRHP), Bharti Airtel Limited holds a stake of 70% in Bharti Hexacom Limited, which is of 35 crore equity shares and the Government of India, through Telecommunication Consultants of India Limited, holds a stake of 30%, which equals 15 crore equity shares.
Now, the state-owned company, Telecommunications Consultants India Limited, will offload about 7.5 crore shares in Bharti Hexacom through the public offering.
Following the company’s valuation target range of ₹28,000 crore – ₹35,000 crore, the public sector firm would be able to achieve the expected figure by way of offloading its stake in two batches.
TCIL is an engineering and consultancy company. It is under the control of the Department of Telecommunications (DoT), Ministry of Communications, Government of India.
The parent company of Bharti Hexacom is the telecom giant Bharti Airtel, which is one of the most well-known telecommunication services providers in the world. The company has a presence in various countries, including India, Sri Lanka, and more.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Mar 22, 2024, 11:12 AM IST
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