TCIL to Sell 15 pc Stake in Bharti Hexacom, Eyes Strategic Divestment (Image Source: iStockphoto)
State-owned Telecommunications Consultants India Ltd (TCIL) has revealed plans to divest its stake in Bharti Hexacom in two stages, each comprising 15% of the company’s shares.
A senior official informed ET that TCIL is adhering to its strategy to meet the targets outlined by the central government. Initially, TCIL sought to offload a 20% stake but has since revised its plans to divest only 15% for now, with the intention to sell another 15% within the next six months.
Bharti Hexacom, in which TCIL holds a 30% stake, recently secured approval from the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company, controlled by Sunil Mittal’s Bharti Airtel, operates in Rajasthan and the north-eastern region, providing telephony and broadband services under the Airtel brand.
According to the draft red herring prospectus of Bharti Hexacom, TCIL holds 150 million equity shares, of which it plans to offload 75 million through the IPO. The valuation target for Bharti Hexacom is estimated to be between Rs 28,000 crore and Rs 35,000 crore, potentially enabling TCIL to generate Rs 4,200 crore to Rs 5,250 crore by divesting a 15% stake.
Given that Bharti Hexacom is not listed, TCIL may face challenges in achieving its objectives due to potential liquidity discounts. Therefore, selling the entire 30% stake in one tranche could be impractical, as stated by the official.
The IPO will be managed by leading financial institutions including Axis Capital, BOB Capital Markets, ICICI Securities, SBI Capital Markets, and IIFL Securities, acting as book-running lead managers.
