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The follow-on public offering (FPO) of SAR Televenture Ltd, a telecom infrastructure provider, started its subscription on Monday, July 22, and will conclude on Wednesday, July 24. The FPO's price band is set at ₹200 to ₹210 per share.
SAR Televenture disclosed in its stock exchange filing that it allocated 20.35 lakh shares to 11 funds at ₹210 each, totaling ₹42.74 crore.
SAR Televenture specializes in installing and commissioning telecom towers and FTTH (fiber-to-the-home) services in India. By May 31, 2024, the company had installed 413 towers across various regions, including West Bengal, Bihar, Uttar Pradesh, Chandigarh, Odisha, Jharkhand, Himachal Pradesh, Punjab, and the Andaman and Nicobar Islands.
Listed on the National Stock Exchange (NSE) on November 8, 2023, SAR Televenture's initial IPO raised ₹24.75 crore through a fresh issue of 4,500,000 shares, with no offer for sale (OFS) component. On Monday, SAR Televenture shares closed 2.41% lower at ₹237 on NSE.
The company aims to raise ₹450 crore through a combination of a rights offering and FPO, with the rights offering contributing up to ₹300 crore and the FPO ₹150 crore. In FY25, the proceeds will fund ₹273 crore for FTTH network solutions, ₹42.5 crore for an additional 1,000 4G/5G towers, ₹30 crore for working capital, and the rest for general corporate purposes.
The rights offer includes 1.5 crore shares at ₹200 each, with existing shareholders entitled to one rights share per equity share held as of July 9, 2024.
On the first day, the FPO was subscribed 69%. The retail portion was subscribed 1.20 times, the non-institutional investor (NII) portion 32%, and the qualified institutional buyer (QIB) portion 17%. In total, the company received bids for 36,96,000 shares against the 53,62,725 shares on offer, as reported by chittorgarh.com.
The grey market premium (GMP) for the FPO is +15, indicating shares were trading at a ₹15 premium in the grey market, according to investorgain.com. With the upper end of the IPO price band and the current grey market premium, the expected listing price for SAR Televenture shares is ₹225, which is 7.14% higher than the IPO price of ₹210. The GMP reflects investors' willingness to pay above the issue price.
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