In this article you get to know insight about SAR Televenture Limited IPO Details. SAR Televenture Limited is a notable player in the telecommunications solutions sector, specializing in serving Telecom Network Operators. The company’s core activities revolve around the installation and commissioning of 4G and 5G towers, Optical Fiber Cable (OFC) systems, and the provision of network equipment.
Installation and Commissioning: SAR Televenture excels in setting up and activating 4G and 5G towers, critical infrastructure for modern telecommunications networks. This includes deploying the necessary equipment and ensuring their efficient operation.
Optical Fiber Cable (OFC) Systems: The company is involved in the establishment and management of Optical Fiber Cable (OFC) systems. OFC is a key component of high-speed data transmission, and SAR Televenture plays a role in maintaining and expanding these networks.
Network Equipment: SAR Televenture deals in various network equipment essential for maintaining and upgrading telecommunications networks. This includes hardware and technology that support network connectivity and functionality.
Infrastructure Provider Category I (IP-I): The company holds the registration as an Infrastructure Provider Category I (IP-I) with the Department of Telecommunication (DOT). This allows them to lease out build sites, such as GBT/RTT/Pole sites and Out Door Small Cell (ODSC) sites, as well as establish and manage assets like Dark Fibres, Right of Way, Duct Space, and Towers, which can be leased, rented, or sold to telecom service licensees.
Project Management: SAR Televenture offers project management services for various telecom infrastructure projects, including laying ducts and optic fiber cables, constructing basic transmission and telecom utilities, and providing turnkey solutions for optical fiber projects.
Geographic Presence: The company has a notable presence across multiple regions, with a portfolio of over 373 towers leased out in areas such as West Bengal, Bihar, Uttar Pradesh, and Punjab. This demonstrates its reach and contribution to the telecommunications infrastructure in these regions.
Subsidiary Acquisition: In January 2023, SAR Televenture acquired SAR Televenture FZE in the United Arab Emirates, formerly known as Shoora International FZE. This subsidiary engages in a range of activities, including wholesale fresh foodstuff trading, import and export of ferrous and non-ferrous metals, wireless communication devices and equipment trading, and electronic chips and semiconductors trading.
Financial Performance: In fiscal 2023, SAR Televenture reported a total revenue from operations of Rs. 3,246.17 Lacs (approximately 32.46 million INR) and a Profit After Tax (PAT) of Rs. 388.38 Lacs (approximately 3.88 million INR). This signifies a notable financial performance in that fiscal year.
SAR Televenture’s wide array of services and strategic acquisitions demonstrate its commitment to the telecommunications sector, as well as its growing presence in India and internationally.
Objects of the Issue
The company has outlined its planned utilization of the net proceeds from the issue, which are the funds raised through an IPO or another financing method.
Installation of 5G/4G Towers:
The allocation of funds for the installation of 5G/4G towers reflects the company’s intention to invest in critical infrastructure for modern telecommunications. This is a strategic move to expand and enhance the network capacity and capabilities, keeping pace with evolving technology and the growing demand for faster and more reliable network services.
Full or Part Repayment and/or Prepayment of Secured Borrowings:
The company plans to use a portion of the funds to repay or prepay certain outstanding secured borrowings. This may include paying down loans and associated charges to reduce the financial burden and interest costs. Reducing debt can lead to improved financial health and lower interest expenses.
Funding Working Capital Requirements:
Allocating funds to meet working capital requirements is essential for sustaining day-to-day operations. It covers expenses like salaries, inventory purchases, operational costs, and other operational needs. Adequate working capital ensures the company’s smooth functioning and the ability to manage short-term financial obligations.
General Corporate Purposes (GCP):
Funds allocated for “General Corporate Purposes” provide flexibility for the company to address various operational needs and strategic initiatives. This category can encompass a wide range of activities, including research and development, technology investments, market expansion, and maintaining cash reserves for future opportunities. It offers versatility in how the funds can be used to support the company’s overall business objectives.
The specific distribution of funds among these objectives may vary based on the company’s financial strategy, priorities, and the amount of funds raised through the issue. Disclosing the intended use of funds is a standard practice in an IPO prospectus, ensuring transparency for potential investors regarding how their investments will be utilized by the company.
SAR Televenture Limited IPO Details
| IPO Date | November 1, 2023 to November 3, 2023 |
| Face Value | ₹2 per share |
| Price | ₹52 to ₹55 per share |
| Lot Size | 2000 Shares |
| Total Issue Size | 4,500,000 shares (aggregating up to ₹24.75 Cr) |
| Fresh Issue | 4,500,000 shares (aggregating up to ₹24.75 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing | NSE SME |
| Share holding pre issue | 10,500,000 |
| Share holding post issue | 15,000,000 |
| Market Maker portion | 230,000 shares |
SAR Televenture Limited IPO Reservation
QIB Shares Offered (Not more than 50.00% of the Net Offer):
This allocation designates that a maximum of 50% of the shares offered in the IPO are reserved for Qualified Institutional Buyers (QIBs). QIBs typically include institutions like mutual funds, insurance companies, banks, and other large financial entities.
Retail Shares Offered (Not less than 35.00% of the Offer):
This allocation ensures that at least 35% of the shares offered are made available to retail investors. Retail investors are individual or small-scale investors who are not part of institutional or professional investment groups. This allocation aims to provide an opportunity for retail investors to participate in the IPO.
NII (HNI) Shares Offered (Not less than 15.00% of the Offer):
At least 15% of the shares offered are allocated to Non-Institutional Investors (NII) or High Net Worth Individuals (HNI). These investors may include wealthy individuals, family offices, or entities that do not fall under the QIB category but have significant financial resources.
These allocations are structured to ensure a fair and balanced distribution of shares among different investor categories, allowing a diverse range of investors to participate in the offering. The specific percentages can vary based on regulatory requirements and the company’s strategy.
SAR Televenture Limited IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 2000 | ₹110,000 |
| Retail (Max) | 1 | 2000 | ₹110,000 |
| HNI (Min) | 2 | 4,000 | ₹220,000 |
SAR Televenture Limited IPO Promoter Holding
Share Holding Pre Issue (87.80%):
This figure indicates that before the issuance of new shares, the promoter, M.G. Metalloy Private Limited, held approximately 87.80% of the total shares in the company. This implies that they had a substantial majority stake and significant ownership and control of the company prior to the share issuance.
This percentage reflects the proportion of ownership held by the promoter relative to the total outstanding shares of the company. The issuance of new shares in an IPO or similar event could potentially lead to a dilution of the promoter’s ownership stake, depending on the number of shares offered to the public or other investors.
SAR Televenture Limited IPO Tentative Dates
| IPO Open Date | Wednesday, November 1, 2023 |
| IPO Close Date | Friday, November 3, 2023 |
| Basis of Allotment | Monday, November 6, 2023 |
| Initiation of Refunds | Tuesday, November 7, 2023 |
| Credit of Shares to Demat | Tuesday, November 7, 2023 |
| Listing Date | Wednesday, November 8, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 3, 2023 |
SAR Televenture Limited IPO Registrar
Skyline Financial Services Private Ltd
Phone Number: +91 22 2851 1022
Email Address: ipo@skylinerta.com
You can reach out to them via phone number or email address for inquiries, assistance, or specific information related to their services.
FAQs
What is the primary focus of SAR Televenture Limited in the telecommunications sector?
SAR Televenture Limited specializes in the installation and commissioning of 4G and 5G towers, Optical Fiber Cable (OFC) systems, and the provision of network equipment for Telecom Network Operators.
What does the “Infrastructure Provider Category I (IP-I)” registration allow SAR Televenture to do?
The Infrastructure Provider Category I (IP-I) registration with the Department of Telecommunication (DOT) allows SAR Televenture to lease out build sites (such as GBT/RTT/Pole sites and ODSC sites), establish and manage assets (including Dark Fibres, Right of Way, Duct Space, and Towers), which can be leased, rented, or sold to telecom service licensees.
What was SAR Televenture’s total revenue and profit after tax in fiscal 2023?
In fiscal 2023, SAR Televenture reported a total revenue from operations of approximately Rs. 32.46 million (Rs. 3,246.17 Lacs) and a Profit After Tax (PAT) of approximately Rs. 3.88 million (Rs. 388.38 Lacs).
What are the key objectives for raising funds through SAR Televenture’s IPO?
The funds raised through the IPO will be used for various purposes, including the installation of 5G/4G towers, full or part repayment and/or prepayment of secured borrowings, funding working capital requirements, and general corporate purposes.
When is the SAR Televenture Limited IPO scheduled to take place?
The SAR Televenture Limited IPO is scheduled to be open for subscription from November 1, 2023, to November 3, 2023.
What is the lot size for the SAR Televenture Limited IPO?
The lot size for the SAR Televenture Limited IPO is 2000 shares.
How will the promoter holding change before and after the IPO?
Before the IPO, the promoter, M.G. Metalloy Private Limited, held approximately 87.80% of the total shares, which may change after the IPO due to the issuance of new shares.
What are the tentative dates for the SAR Televenture Limited IPO process?
The IPO opens on Wednesday, November 1, 2023, and closes on Friday, November 3, 2023. The listing date is Wednesday, November 8, 2023.