SAR Televenture Ltd IPO

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:

1. 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.
2. 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.
3. 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.
4. 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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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