Telecommunication infrastructure provider SAR Televenture on Wednesday successfully closed the largest-ever composite public issue of ₹450 crore on NSE Emerge Platform, which received an overwhelming response from investors. The offer was a combination of highest-ever rights issue of ₹300 crore and second largest further public offer (FPO) of ₹150 crore in the small and medium enterprises (SME) space.
In the SME segment, till now, Vishal Fabrics’ ₹87.83 crore rights issue was the largest, followed by Markolines Pavement Technologies which garnered ₹49.86 crore, data from PRIME Database shows. On the other hand, KP Green Engineering has raised the largest-ever FPO of ₹180 crore in March 2024.
As per the exchange data, the ₹300-crore FPO of SAR Televenturem, which opened for subscription between July 22 and July 24, was subscribed more than 8 times with oversubscription in all categories. The issue, having price band of ₹200-210 per equity share, was booked 8.31 times in qualified institutional buyers (QIB) segment, while non-institutional institutional investors (NII) portion received 11.26 times bids. The quota reserved for retail investors was subscribed 6.51 times.
The anchor round of the FPO was completed on July 19, 2024, in which the company raised ₹42.74 crore from anchor investors at a price of ₹210 per equity share of face value ₹2 each.
The allotment of shares to applicants is expected to be finalised today, while the tentative listing date of shares on the NSE SME is July 29, 2024.
The company intends to use FPO proceeds for setting up of fiber-to-the-home network solutions for 3 lakh home passes and an additional 1,000 number of 4G/5G telecom towers. A part of the fund will be utilised for funding incremental working capital requirements of the company and to meet general corporate purposes.
On the other hand, the ₹150-crore rights issue of SAR Televenture also garnered a strong response from its shareholders. The floor price of the issue, which opened on July 15 and closed on July 22, was ₹200 per rights equity share of face value ₹2 each.
The rights issue for 1.5 crore shares generated bids for more than 1.8 shares on the SME platform, with the issue subscribing 121.6%. The public portion received total applications of 69,34,000 equity shares against total public holding of 50,60,275 fully paid up equity shares, resulting in oversubscription by 137%. The quota for promoters of the company also oversubscribed by 113.73% as it received bid for 1,13,04,500 equity shares against the total promoter entitlement of 99,39,725 fully paid up equity shares.
Pantomath Capital Advisors Private Limited acted as the sole lead manager to the composite issue.
SAR Televenture shares made its debut on the NSE Emerge Platform on November 08, 2023, after raising ₹24.75 crore via IPO at a price band of ₹52-55 per equity share. The shares have risen 320% against its issue price in the last eight months to ₹231.9 on July 25. The SME stock hit an all-time high of ₹288.74 on February 7, 2024, and its lowest level of ₹78.52 on November 13, 2023.
Established in 2019, the company is a telecommunication infrastructure provider, engaged primarily in the business of installing and commissioning telecom towers & FTTH in India. As of May 31, 2024, it has installed an aggregate 413 towers on lease across West Bengal, Bihar, Uttar Pradesh, Chandigarh, Odisha, Jharkhand, Himachal Pradesh, Punjab, and Andaman & Nicobar Islands.
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