SAR Televenture FPO: Company to Raise ₹450 Cr Through Rights Issue, Including ₹150 Cr via FPO

About SAR Televenture Ltd

SAR Televenture Ltd provides telecommunication solutions for network operators. As part of its core functions, SAR Televenture Ltd  installs company installs 4G and 5G towers and lays optical fibre cable (OFC) systems. It is already registered as an Infrastructure Provider Category I (IP-I) with the DOT. The company also leases out built sites to the telecom companies as well as maintains assets like Dark Fibers, Duct Space, and Towers. SAR Televenture Ltd offers end-to-end project management services for laying ducts and optic fiber cables as well as for constructing basic transmission. It largely operate out of the state of Maharashtra; but has presence in several other states and has, till date, installed over 413 leased towers across the length and breadth of India.

Highlights of the SAR Televenture FPO and Rights issue

Here are some of the highlights of the SAR Televenture FPO and Rights issue. SAR Televenture Ltd had come out with an IPO last year in November 2023 and has now returned to the capital markets. Here are the details of the rights and FPO issue.

•    The company, SAR Televenture Ltd, proposes to raise a total sum of ₹450 crore. This will comprise of a follow-on public offer of approximately ₹150 crore and a rights issue to existing shareholders to the tune of ₹300 crore.

•    The FPO issue will have its anchor bidding on July 19, 2024 while the FPO will open for subscription on July 22, 2024 while the FPO will close for subscription on July 24, 2024. On the other hand, the rights issue will open on July 15, 2024 and the last date for rights renunciation will be July 16, 2024 and the rights issue will close for subscription on July 22, 2024. The rights will be in the ratio of 1:1.

•    The proceeds of the issue will be used by the company for funding the setting up of fibre to home network, network solutions for 3 lakh home passes, setting up of additional 1,000 4G and 5G towers as well as for working capital requirements.

•    Pantomath Capital Advisors Private Ltd will be the lead manager to the issue, and Link Intime India Private Ltd will be the registrar to the issue. The entire FPO issue will be a book built issue priced in the price band of ₹200 to ₹210 per share.

SAR Televenture: Stock Performance

The stock of SAR Televenture Ltd was listed on the NSE SME segment in November 2023. The SAR Televenture IPO in November 2023 was priced at the upper band of ₹55 per share. How has the stock done post listing. The table below captures the price performance of SAR Televenture Ltd since its listing in November last year till date.

Check live SAR Televenture Stock Performance and SAR Televenture Share Price 

Data Source: NSE

In the above chart, we have captured the price performance of SAR Televenture Ltd since the listing last year in November 2023. The stock hit a high of ₹332.05 and a low of ₹90.30 in the last one year. The above chart captures key decisive price points in the up journey up to February and then the flat to down journey. 

The IPO last year was priced at ₹55, so at the current market price of ₹237.35 per share, the stock price has appreciated 332% from the IPO issue price, which is a fairly good return. The stock has nearly doubled in the last one year. However, investors need to bear in mind that the FPO comes after the stock has appreciated 332% from the IPO price and at a time when the Nifty and the Sensex are at lifetime highs.