Schedule of SAR Televenture Follow-on
| Issue open date | 22 Jul 2024 |
| Issue close date | 24 Jul 2024 |
| UPI mandate deadline | 24 Jul 2024 (5 PM) |
| Allotment finalization | 25 Jul 2024 |
| Refund initiation | 26 Jul 2024 |
| Share credit | 26 Jul 2024 |
| Listing date | 29 Jul 2024 |
| Mandate end date | 09 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 24 Aug 2024 |
| Lock-in end date for anchor investors (remaining) | 23 Oct 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About SAR Televenture Follow-on
SAR Televenture Limited’s FPO is scheduled to launch on July 22, 2024, with subscriptions closing on July 24, 2024. Incorporated in 2019, SAR Televenture is involved in the telecommunications infrastructure sector, focusing on the installation and commissioning of telecom towers in India. The company is registered with the Department of Telecommunications as an Infrastructure Provider Category I (IP-I). It specializes in leasing telecom infrastructure such as ground-based towers (GBT), rooftop towers (RTT), and out-of-door small cells (ODSC). It also manages telecom service providers’ assets, including dark fibres, right of way, duct space, and towers. Furthermore, it has ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications for quality, environmental, and occupational health and safety management systems.
They provide project management services for laying duct and optic fiber cables, constructing transmission and telecom utilities, leasing dark fiber, and building and maintaining optical fiber networks. Operations extend across various regions in India, including West Bengal, Bihar, Uttar Pradesh, Chandigarh, Odisha, Jharkhand, Himachal Pradesh, Punjab, and Andaman & Nicobar Islands. The company expanded its reach on January 3, 2023, by acquiring 100% of the equity share capital of SAR Televentures F.Z.E in the United Arab Emirates, enhancing its capabilities in fiber cable laying and network equipment trading.
Financials of SAR Televenture Follow-on
Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹150 crores |
| Fresh issue | ₹150 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Setting up of Fiber-to-the-Home (FTTH) network | 273 (72.6%) |
| Setting Up 1000 New 4G/5G Telecom Towers | 42.50 (11.3%) |
| Working capital | 30 (8%) |
| General corporate purposes | 44.50 (8.1%) |
*All figures except EPS are in ₹ crores
Strengths
- Clientele base of major telecom service providers: The company’s expertise in the telecom sector has earned the trust of major telecom service providers like Reliance Jio, Bharti Airtel, and Vodafone-Idea, contributing to stable and sustained demand for its services.
- Oligopolistic market position: The telecom industry in India is dominated by a few large players, providing a stable and predictable business environment for the company.
- Strong relationships and repeat orders: The company’s commitment to quality service has resulted in long-term contracts and repeat business from major clients, ensuring consistent revenue.
- High market share in broadband and wireline subscribers: Dominance in these sectors ensures a steady revenue stream and market presence.
Risks
- Dependency on a limited number of customers: The company’s revenue is highly dependent on a few major telecom service providers, which poses a risk if there are any adverse developments with these customers.
- Financial Stability (Debt and Loans): The company’s debt financing is secured by its assets and imposes conditions and covenants that restrict actions like capital changes, dividends, and investments. Violating these terms could impact financial stability.
- Limited operating history: Being relatively new in the industry, the company faces risks inherent to early-stage businesses, making it difficult to evaluate its long-term prospects.
- Regulatory and compliance risks: The company needs to adhere to various regulations and obtain multiple permits. Any failure to comply or obtain these can adversely affect operations.
- Economic dependency on the Indian market: Any slowdown or adverse changes in the Indian economy can significantly impact the company’s business and financial performance.
Note:
- The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
- The allotment status will be available by July 26, 2024, on the registrar’s website and the NSE website.