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During Holi, the festival of COLOURS, I wish each and every Member of this Forum : * HAPPY HOLI* As this festival is of happiness, I may like to share findings announced on Wednesday to mark the UN's International Day of Happiness. Finland emerged as the happiest country in the world, topping the World Happiness Report 2024, the seventh successive year that the country has occupied the top spot on the list. India was ranked 126th out of 143 nations in a Global Happiness Index released. It has been noted that older age is associated with higher life satisfaction in the world's most populous country.
This is out of Share Market news. This may also give the idea of people investing in Share Market a bit.
And what is your rationale behind this statement? IPO price band is not yet announced. It is entire OFS where Govt is selling it's stake thereby company does not get any proceeds. PAT in one of last three years is negative. Retail quota is just 10%. There are many unknowns and clear red flags. How it's tagged as "Best IPO" and "Must Apply" is beyond comprehension unless it is paid promotion!
11.2. Redhu Jind| Link| Bookmark|
March 24, 2024 1:25:19 PM
Top Contributor (400+ Posts, 100+ Likes)
Why is it a separate company even?? Why should I buy it instead of listed Airtel? Because it has "high potential" fixed line business in north-east? LOL.
What is next, Bharti Southcom for southern states?
Don't get me wrong I highly admire Sunil Mittal, I really like first generation hardworking promoters/entrepreneurs who build brand and company from scratch like Dhirubhai Ambani and Gautam Adani.
But I judge business by its quality & future only and this company has Nothing to appeal me.
GMP doesn't decide my decision, I criticize Gopal Namkeen when its GMP was 120, what happened to it everyone knows.
10.1. arunARUN| Link| Bookmark|
March 24, 2024 11:56:27 AM
IPO Guru (2000+ Posts, 1700+ Likes)
That way you will miss jungle for trees. If you want Bharti then buy partly paid Bharti airtel issue. This issue is some thing like that, if you choose to get drift
@arunARUN ji - Get the drift but doesn't this issue seem to capture full pricing even on EV/EBITDA basis in comparison to Bharti Airtel?
Keep minting!
10.3. rohiitian| Link| Bookmark|
March 26, 2024 8:09:55 PM
IPO Guru (1200+ Posts, 800+ Likes)
@NeoLongus TTM EV/EBITDA implies Hexacom at ~7-8% discount to Airtel, but given lower relative debt profile, the TTM PE of Hexacom (after adjusting for one-time exp) is attractive - 36 PE vs 63 PE for Airtel. Growth is in line with Airtel overall.
Given capex heavy biz, maybe EV / EBITDA is best metric with small premium because of lower debt burden. Market will value the quality of promoter entity
@rohiitian ji - Agree with you and based on preferences/interpretation of BS entries for EV calculation, the EV/EBITDA discount may evaporate or remain slim at best. I too noticed the PE aspect but I'm inclined to believe that lot more investment might be needed in the state given recent changes which may lead to EV/EBITDA being more appropriate. Will be applying SHNI bids for sure here but just trying to evaluate if it makes sense to go BHNI here versus some SME opportunities or leave it to purchase later.
Keep minting!
10.5. rohiitian| Link| Bookmark|
March 26, 2024 8:49:09 PM
IPO Guru (1200+ Posts, 800+ Likes)
@NeoLongus Likewise, still to make up my mind, but this will be well studied by all analysts and we will get different perspectives before deciding. Also by the time IPO comes, based on how Airtel moves the discount could vanish, or it could widen🤞
5.1. arunARUN| Link| Bookmark|
March 24, 2024 10:41:41 AM
IPO Guru (2000+ Posts, 1700+ Likes)
What would be raw material cost in such business?
5.2. A. Rajput| Link| Bookmark|
March 24, 2024 11:12:34 AM
Top Contributor (300+ Posts, 100+ Likes)
@arunARUN I think in telecommunication reliance jio is a big elephant and capturing market day by day. Due to high compitition ARPU(average revenue per user)is very less of all tsp in India and In fixed line there are very many small operator which can take bandwidth with big player like jio,idea,airtel and provide fixed line to customer. In this bussiness I think no raw material cost but infra related one time expenses like cable laying etc.
5.3. arunARUN| Link| Bookmark|
March 24, 2024 12:00:10 PM
IPO Guru (2000+ Posts, 1700+ Likes)
You got infra right. So in typical chicken and egg here Infra come first obviously funded by debt. Which per say may not be bad as laying infra cost will keep on rising as time passes
Pure OFS to facilitate Government owned TCIL to sell its 15% stake out of 30% through IPO. Bharti Hexacom will not get any proceeds from this IPO. Balance 15% is slated to be offloaded in next 6 months. Let's see at what price levels the IPO gets launched.
4.1. arunARUN| Link| Bookmark|
March 24, 2024 10:38:02 AM
IPO Guru (2000+ Posts, 1700+ Likes)
How do you know time line for balance 15% divestment. 6 months is lock in for all existing shareholders Shareholder (TCIL) would be free to sell by way of OFS, open market sale on drip basis, block deal etc It is not bound by promoter guidelines. It may sell say 5% to existing promoters so they can have 75% Many unknowns
4.2. Chhote Lal| Link| Bookmark|
March 24, 2024 11:38:17 AM
IPO Mentor (6300+ Posts, 4800+ Likes)
One has to believe when heard direct from horse's mouth.
Excerpt from recent media publication as said by top official of TCIL :
"We are going ahead as per the strategy, to meet the target set out by the government. TCIL will sell only 15% stake in Bharti Hexacom now, and another 15% at an opportune time within the next six months"
4.3. arunARUN| Link| Bookmark|
March 24, 2024 12:02:26 PM
IPO Guru (2000+ Posts, 1700+ Likes)
I am very certain that TCIl will not like to sell below issue price come what may. (as opposition may question at that time)
Bharti Hexacom se Telecom Consultants of India Ltd (TCIL) apna 30% stake mid 2015 mein bhi bechna chahti thi through ipo/ofs, tab bhi yeh Degrowth Company Nhi Biki
Aur abb 9-10 saal baad wapis iska Ofs karna chahte with High Valuation even after Business Degrowth 😂🤣 Sab Bull Market ka fayda Lena chahte hai par phir pitai hoti hai investor ki😂🤣
2.1. arunARUN| Link| Bookmark|
March 24, 2024 10:39:51 AM
IPO Guru (2000+ Posts, 1700+ Likes)