SAR Televenture IPO: Check Issue Date, Price, Lot Size & Company Financials

IPO Details

Bidding Dates

31 Oct '23 - 02 Nov '23

Minimum Investment

₹110,000 / 1 Lots ( 2000 Shares )

Price Range

₹52 - ₹55

Maximum Investment

₹110,000 / 1 Lots ( 2000 Shares )

Retail Discount

Not Applicable

Issue Size

₹24.75 Cr

Investor category and sub category

Qualified Institutional Buyers | Non-Institutional Investors | Retail Individual Investors |

IPO Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

Oct 31, 2023

IPO Closing Date

Nov 2, 2023

Basis of Allotment

Nov 5, 2023

Initiation of Refunds

Nov 6, 2023

Credit of Shares to Demat Account

Nov 6, 2023

Listing Date

Nov 7, 2023

UPI Mandate Confirmation Cut-off

Nov 2, 2023

SAR Televenture Ltd IPO Subscription Details

Date	QIB	NII	Retail	Total
Day 1Oct 31, 2023	0.03x	6.02x	14.17x	8.40x
Day 2Nov 1, 2023	7.44x	33.02x	51.34x	34.95x
Day 3Nov 2, 2023	77.00x	715.77x	222.10x	288.09x

SAR Televenture Ltd IPO Subscription Live Status

Investor Category	Subscription (Times)
Qualified Institutions Buyers	7.44
Non-Institutional Buyers	33.02
Retail Investors	51.34
Total	34.95

About SAR Televenture Ltd.

SAR Televenture Limited was established with the primary objective of providing comprehensive telecommunication solutions to Telecom Network Operators in India. This company is engaged in the installation and commissioning of cutting-edge 4G and 5G Towers, as well as Optical Fibre Cable ("OFC") Systems. SAR Televenture also deals in network equipment, making it a prominent passive telecommunication infrastructure provider in the country.

The company is registered as an Infrastructure Provider Category-I (IP-I) with the Department of Telecommunication (DOT), granting it the authority to lease out its self-constructed sites, including Pole sites and Outdoor Small Cells. SAR Televenture is also responsible for establishing and maintaining assets such as Dark Fibres, Right of Way, Duct Space, and Towers. These assets are made available on a lease, rent, or sale basis to licensed Telecom Service providers.

In the fiscal year 2022-23, SAR Televenture has successfully installed and commissioned a substantial number of towers, with additional 140 towers, bringing the cumulative total to 373. In previous years, the company installed 108 towers in 2021-22 and 125 towers in 2020-21, demonstrating a consistent upward trajectory in its operations.

India is on a trajectory to become the world's second-largest smartphone market by 2025, boasting a remarkable 1 billion installed devices and an estimated 920 million unique mobile subscribers by the same year, including 88 million 5G connections. Notably, 5G technology is projected to contribute approximately $450 billion to the Indian economy between 2023 and 2040.

Under the Union Budget 2023, the Government of India has initiated plans to establish one hundred laboratories in engineering institutions dedicated to developing applications utilising 5G services. This strategic move aims to unlock a new array of opportunities, innovative business models, and significant employment prospects.

SAR Televenture Limited is poised to capitalise on the promising growth opportunities in the Indian telecommunications market, as outlined by GSMA and TRAI. SAR Televenture Limited recognises the compelling incentives for wireless telecommunications service providers to increasingly embrace tower infrastructure sharing. These providers are under mounting pressure to reduce operating expenses and capital expenditures. Consequently, sharing tower infrastructure with third-party operators such as SAR emerges as the economically prudent choice.

SAR Televenture Limited IPO Details

SAR Televenture Limited IPO Date

The IPO of SAR Televenture Limited is open for subscription from November 1, 2023, to November 3, 2023.

SAR Televenture Limited IPO's Price Band

SAR Televenture Limited’s IPO is a fresh issue IPO of up to ₹24.75 crore. It is a fresh price issue. The price range is set to ₹52 to ₹55 per share.

SAR Televenture Limited IPO’s Lot Size

The lot size for SAR Televenture Limited’s IPO is 2000 shares with a minimum investment of ₹1,10,000.

SAR Televenture Limited IPO’s Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

Infrastructure Development: SAR Televenture Limited has installed numerous towers, currently leasing to Airtel and Vodafone Idea Limited (VIL). In the upcoming year, SAR plans to install 300 new 5G/4G towers based on a Letter of Intent. The company is allocating ₹12.39 crore for this capital expenditure project.
Repayments on Borrowings: SAR Televenture Limited secured working capital and term loans amounting to ₹1.20 crore and ₹15.00 lakh, respectively, through ICICI Bank's Sanction Letters issued on September 30, 2022, and October 26, 2022. As of October 15, 2023, SAR Televenture Limited maintained an outstanding loan balance of ₹117.92 lakh and ₹10.75 lakh for the respective facilities. Notably, the company has earmarked ₹78.90 lakh for repayment from the IPO Proceeds.
Working Capital Requirements: The company is planning to allocate ₹4.50 crore from the Net Proceeds for its working capital needs in Fiscal 2024. The remaining portion of the working capital requirements for Fiscal 2024 will be covered through internal accruals and net worth.
General Corporate Purpose: SAR Televenture Limited plans to utilise the remaining Net Proceeds for general corporate purposes. These funds will be directed towards strategic initiatives, strengthening brand identity and marketing, and fulfilling general corporate needs as approved by the Board while adhering to regulatory requirements.

How To Check the Allotment Status of SAR Televenture Limited’s IPO?

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Log in to the Angel One app
Go to the IPO Section and then to IPO Orders
Select the individual IPO that you had applied for and check the allotment status.
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Contact Details of SAR Televenture Limited

Registered office: P.No – 346A, 2nd Floor, Udyog Vihar, Phase-4, Gurugram, Haryana - 122016, India

Contact Person: Abhishek Jain (Company Secretary and Compliance Officer)

Phone: +91 124 - 45133283

E-mail: info@sarteleventure.com

SAR Televenture Ltd. Company Financials

Particulars	Year ending on March 31, 2023 (₹ lakh)	Year ending on March 31, 2022 (₹ lakh)	Year ending on March 31, 2021 (₹ lakh)
Net Sales	3,246.17	472.89	90.71
Sales Growth (%)	584.63%	421.98%	-
EBITDA Margin (%)	17.57%	13.29%	11.91%
Profit After Tax (PAT)	388.36	3.71	2.71
Total Borrowings	839.01	337.09	136.87
Cash & Cash Equivalents	71.69	0.44	3.13
Debt to Equity Ratio(x)	0.65	-43.49	-11.56
Return on Equity (%)	32.91%	-50.00%	25.00%
Return on Capital Employed (%)	16.03%	0.97%	-2.07%
Earning Per Share (EPS) in absolute (₹)	455.41	8.91	8.54

Know before investing

Strengths

SAR Televenture Limited has forged enduring relationships with Bharti Airtel Limited, a major contributor to its revenue, showcasing consistent annual contributions of ₹61.76 lakh (fiscal 2023), ₹42.59 lakh (2022), and ₹9.07 lakh (2021).
Positioned strategically in metro and A-category Circles, SAR Televenture anticipates benefiting from the expanding network demands for 5G technology while also identifying growth opportunities in voice services in B and C-category Circles and untapped potential in rural areas for both voice and data services.
SAR Televenture actively promotes tower sharing to reduce operating costs and capitalise on government initiatives. This approach supports the expansion of wireless networks and the growing demand for 5G.
SAR Televenture Limited aims to maximise revenue by increasing sharing and equipment loading on existing towers, ensuring that each additional operator boosts margins.

Risks

SAR Televenture Limited heavily relies on a limited number of key customers for a significant portion of its revenue, making it vulnerable to any loss of these customers.
With a short operating history since its incorporation in 2019, SAR Televenture Limited faces the typical challenges of early-stage companies, and its past results may not reflect its future performance.
While the company achieved profitability in fiscal years 2022 and 2023, it anticipates rising operating expenses in the near future, with no guarantee of sustained profitability.
SAR Televenture Limited's business is directly linked to the performance of the Indian wireless telecommunications industry, subject to industry fluctuations and customer-related developments.
A substantial part of SAR Televenture Limited's revenue comes from its subsidiary, acquired in the fiscal year 2022-23. Fibre cable laying & installation and Trading of network equipment accounted for 80.19% of total revenue in fiscal 2023, with similar trends for the 3 months ending June 30, 2023, where these activities constituted 91.07% of total revenue.