SAR Televenture to raise Rs 450 cr via FPO, rights issue to fund expansion

Telecommunication infrastructure provider SAR Televentures Ltd is looking to raise Rs 450 crore through a combination of Further Public Offer (FPO) and a rights issue to fund the company’s expansion plans.

The Noida-based SAR Televentures, which made its debut on NSE’s Emerge platform in November 2023, is engaged in the business of installing and commissioning telecom towers in India.

The composite public issue with a face value of Rs 2 consists of a further public offer of Rs 200 crore and a rights issue of Rs 250 crore, according to the draft offer documents filed last week.

Proceeds from the issue, to the extent of Rs 273 crore will be used for funding the setting up of Fiber to the Home (FTTH) network solutions for 3 lakh home passes; Rs 42.50 crore for setting up of an additional 1,000 number of 4G/5G telecom towers; Rs 30 crore for funding incremental working capital requirement of the company. Besides, funds will be used for general corporate purposes.

As part of its strategic expansion plan, it intends to venture into the FTTH business vertical. FTTH represents a cutting-edge broadband internet connection technology that leverages optical fibre to provide high-speed internet directly to households.

As of January 31, 2024, the company installed a total of 413 towers on lease across various regions including West Bengal, Bihar, Uttar Pradesh, Chandigarh, Odisha, Jharkhand, Himachal Pradesh, Punjab, and Andaman & Nicobar Islands.

For fiscal 202223, the company’s revenue from operations increased multi-fold to Rs 32.46 crore from Rs 4.73 crore in fiscal 202122 and profit after tax (PAT) jumped to Rs 3.94 crore in fiscal 2023 from Rs 0.03 crore in fiscal 2022.

Pantomath Capital Advisors Private Limited is the sole book-running lead manager for the issue.