SAR Televenture IPO (NSE SME) Overview

SAR Televenture IPO IPO entails to raise ₹24.75 Cr Cr through issue of 4,500,000 shares equity shares of Rs. 10 each entirely as a fresh issue. SAR Televenture Limited is a provider of telecommunication solutions to Telecom Network Operators and is primarily is engaged in the installation and commissioning of 4G and 5G Towers, Optical Fibre Cable (OFC) Systems, and also dealing in network equipment.

IPO opensNov 1, 2023
IPO ClosesNov 3, 2023
IPO Size (Rs.)₹24.75 Cr
IPO Size (shares)7,140,000 shares
BreakupFresh issue only
Face Value:₹ 2
IPO Price in Rs :₹52 to ₹55
Minimum Lot2000 Shares
Listing AtNSE SME
QIB, anchor~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerPantomath Capital
RegistrarSkyline Financial Services
Market makerR.K.Stock Holding.

About SAR Televenture:

  • Company is registered as Infrastructure Provider Category-I (IP-I) with Department of Telecommunication (DOT) which permits us to lease out own build sites
  • i.e. GBT/RTT/Pole sites and Out Door Small Cell (ODSC) and establish and maintain assets such as Dark Fibres, Right of Way, Duct Space and Tower for the purpose to grant on lease or rent or sale basis to the licensees of Telecom Services. We also provided support services such as includes project management for laying of the duct and optic fibre cables, construction of basic transmission and telecom utilities, dark fiber leasing, optical fiber network construction, maintenance of duct and optic fibre and optical fibre project turnkey services to various, Telecom Network Operators & Broad Band Service Operators and ISPs across Maharashtra. Our Company has already installed and commissioned 125, 108 and 140 number of towers in the year 2020-21, 2021-22 and 2022- 23 respectively.
  • M.G Metalloy Private Limited is the Promoter of the Company.

Financials: SAR Televenture

ParticularsJune 30, 2023March 31, 2023March 31, 2022March 31, 2021
Revenue from operations 21,731.873,246.17472.8990.71
Profit after Tax192.38388.363.71-2.71
Share Capital21065.294.184.05
Net Worth 13,324.401,178.72-7.74-11.57
EPS diluted3.5691.081.78-1.71
Net Asset Value31.6636.11-3.71-5.71
Total borrowings752.18839.01337.09136.87
Post issue Share Capital1,500   
IPO price55.0   
EPS Fy232.6   
PE Fy2321.2   
EPS Fy24 (annualized)5.1   
PE Fy24  (annualized)10.7   
Market cap in Lacs8,250.0   
Market Cap/sales2.5   

SAR Televenture IPO: Anchor

SAR Televenture IPO: Salient Points

  • SAR Televenture has provided more than 373 towers on lease over various areas in West Bengal, Bihar, Uttar Pradesh, and Punjab.
  • In January 2023, the company acquired 100% oequity share capital of SAR Televenture FZE, United Arab Emirates (Formerly Shoora International FZE) from Shoora Capital Limited.
  • ICICI bank has sanctioned loans to the company.
  • The company plans to allocate the net proceeds from the issuance to the following purposes:
    • Infrastructure Development: install 5G/4G towers . The company is allocating ₹12.39 crore for this capital expenditure project.
    • Repayments on Borrowings: company has earmarked ₹78.90 lakh for repayment from the IPO Proceeds.
    • Working Capital Requirements & General Corporate Purpose:
  • SAR Televenture actively promotes tower sharing to reduce operating costs and capitalise on government initiatives.
  • Company installed 108 towers in 2021-22, 125 towers in 2020-21, In the fiscal year 2022-23. SAR Televenture has commissioned additional 140 towers, bringing the cumulative total to 373 towers.
  • Compnay is positioned strategically in metro and A-category Circles and thus SAR Televenture may be benefiting from the expanding network demands for 5G.
  • Working with Top Telecom , E-Commerce and Infrastructure Companies.
  • SAR Televenture Limited has installed numerous towers and has been leasing to Airtel and Vodafone Idea Limited (VIL).
  • Company has demonstrated upward trajectory in its operations.
  • SAR Televenture IPO is coming at a PE ratio of 21x(fy23 earnings) and10x (fy24 annualized earnings)
  • I intend apply in SAR Televenture IPO subject to availability of funds.
  • GMP as reported on social media has been around Rs. 35.
  • Pantomath as lead manager has been associated in a number of successful IPOs like Plaza Wires Limited, Vishnu Prakash R Punglia Limited,Aeroflex Industries Limited, Sah Polymers Limited, AB Cotspin India Limited, Exxaro Tiles Limited, V-Marc India Limited, Gensol Engineering Limited, Surani Steel Tubes Limited, Ritco Logistics Limited, Mohini Health & Hygiene Ltd, Macpower CNC Machines Ltd etc.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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