SAR Televenture Ltd. IPO - Review, Valuation & GMP Today

SAR Televenture Limited - Complete Overview

SAR Televenture Limited specializes in providing telecommunications solutions to Telecom Network Operators. The company's core activities involve the installation and commissioning of 4G and 5G towers, Optical Fibre Cable (OFC) systems, and the sale of network equipment.

Registered as an Infrastructure Provider Category-I (IP-I) with the Department of Telecommunication (DOT), SAR Televenture has the authorization to lease its infrastructure assets, including GBT/RTT/Pole sites, Outdoor Small Cell (ODSC) sites, Dark Fibers, Right of Way, Duct Space, and Towers, to telecom service licensees.

Additionally, the company offers comprehensive support services, including project management for duct and optic fiber cable installation, construction of essential transmission and telecom utilities, dark fiber leasing, optical fiber network construction, maintenance of ducts and optic fibers, and turnkey services for optical fiber projects. These services are extended to various Telecom Network Operators, Broadband Service Operators, and ISPs across Maharashtra.

In terms of its tower installations, SAR Televenture successfully installed and commissioned 125 towers in 2020-21, 108 towers in 2021-22, and 140 towers in 2022-23. Furthermore, the company has leased a total of 373 towers across different regions, including West Bengal, Bihar, Uttar Pradesh, and Punjab.

On January 3, 2023, the company took a significant step by entering into a Share Purchase Agreement to acquire 100% of the issued and paid-up equity share capital of SAR Televenture FZE in the United Arab Emirates.

This subsidiary, formerly known as Shoora International - FZE, is involved in a variety of activities, including the wholesale trading of fresh foodstuffs (import and export), trading of ferrous and non-ferrous metals (import and export), trading of wireless communication devices and equipment, and trading of electronic chips and semiconductors (import and export).

Notably, the company's revenue from operations has seen substantial growth, increasing from INR 90.71 lakhs in fiscal year 2021 to INR 3,246.17 lakhs in fiscal year 2023.

 

What does the company do?

SAR Televenture Limited offers telecommunication solutions to serve the needs of Telecom Network Operators.

 

IPO Overview

The SAR Televenture Limited IPO date is planned from November 1, 2023, to November 3, 2023. The SME IPO is scheduled to be listed on November 8, 2023.

SAR Televenture Limited IPO price fixed within the range of Rs. 52 to Rs. 55 per share, with the aim of raising Rs. 24.75 crore in funds through this upcoming SME IPO. 

An individual lot of this issue consists of 2000 shares, and retail investors can bid for a maximum of 1 lot. The registration for this IPO is managed by Skyline Financial Services Pvt. Ltd.

 

SAR Televenture Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	1 November 2023
IPO Closing Date	3 November 2023
IPO Allotment Date	6 November 2023
Refund initiation	7 November 2023
IPO Listing Date	8 November 2023

 

SAR Televenture Limited IPO Details 

IPO Opening & Closing Date	1 November to 3 November 2023
Face value	Rs. 2 per Share
Issue Price	Rs. 52 to Rs. 55 per Share
Lot Size	2000 Shares
Price of 1 lot	Rs. 110,000
Issue Size	4,500,000 Shares (aggregating up to Rs. 24.75 Cr)
Offer for Sale	NA
Fresh issue	4,500,000 Shares (aggregating up to Rs. 24.75 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Pvt. Ltd.

 

SAR Televenture Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

 

SAR Televenture Limited IPO Reservation

Institutional Share Portion	50%
Non-Institutional share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Lakhs

Period	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	2,420.77	410.83	144.82
Total Revenue	3,251.63	475.35	90.71
PAT	388.36	3.71	-2.71
Net worth	1,178.72	-7.74	-11.57
Reserve & Surplus	1,113.42	-11.91	-15.62
Total Borrowings	839.01	337.09	136.87

 

Geographic-wise Revenue Bifurcation

(Amount in Lakhs)

Name of State (For Domestic Spread)	March 31, 2023	March 31, 2022	March 31, 2021
West Bengal	308.33	207.02	52.25
Bihar	102.05	93.36	15.96
Uttar Pradesh East	74.30	46.68	13.79
Punjab	54.99	32.47	8.71
Himachal Pradesh	34.65	36.53	-
Andaman	24.69	18.27	-
Odisha	31.20	24.35	-
Jharkhand	9.34	10.15	-
Chattisgarh	3.45	4.06	-
Total	642.99	472.89	90.71

 

Objective of the Issue 

The company plans to utilize the Net Proceeds for the following objectives:

• Funding the installation of 5G/4G towers (referred to as the "Project").
• Repaying, in full or in part, certain outstanding secured borrowings, which may include foreclosure charges, if applicable.
• Addressing the company's working capital requirements.
• Meeting general corporate purposes (GCP).

 

Promoters and Management of SAR Televenture Limited

M.G. Metalloy Private Limited is the promoter of the company.

Pre-issue Promoter Shareholding	87.80%
Post-issue Promoter Shareholding

 

Peer Comparison

Below are the listed peers of SAR Televenture Limited

Company Name	EPS	P/E Ratio	Total Income (Rs. in Lakhs)
SAR Televenture Limited	91.08	-	3,251.63
Suyog Telematics Limited	44.17	17.65	15,228.23
Kore Digital Limited	12.78	27.39	2,127.45

 

IPO's Valuations

SAR Televenture Limited IPO price setting in the range at Rs. 52 to Rs. 55 per share and having an EPS of Rs. 91.08. The PE ratio for assessing the IPO valuation at the upper end of the issue price would be 0.60.

 

Dividend Policy

According to SAR Televenture Limited's IPO DRHP, the company has not distributed any dividends on its equity shares in previous years, and any potential future dividend payments will be contingent on the company's future performance.

 

IPO's Strengths

• Expanding footprint in telecom regions with significant growth prospects.
• A seasoned and committed senior team covering essential roles.
• A streamlined and effective business model.
• Well-established partnerships with our clients.

 

IPO Weaknesses

• The company has a brief operating track record.
• Except for the last two fiscal years, the company has suffered notable losses since its inception.
• The Promoter and company directors are involved in specific tax proceedings.
• A significant portion of the company's revenue comes from its subsidiary.
• The company encounters various forms of competitive challenges.
• It is imperative for the company to secure, renew, or maintain the necessary statutory and regulatory permits and approvals for its business operations.
• The company is subject to a range of legal and regulatory requirements, including those related to environmental and health and safety.
• The company has had negative cash flows from its operating and investment activities in the past.

 

IPO GMP Today

The Latest GMP of SAR Televenture SME IPO is Rs. 17.

 

Conclusion

The company operates within the Telecom Network sector and contends with competition from other industry players. While it has experienced losses in the past, it is presently demonstrating an upturn in its performance. Nevertheless, this growth could be a facade to enhance the appeal of the IPO. Investors should conduct a thorough analysis before committing their funds to the issue to ensure optimal results.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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