SAR Televenture FPO booked 7.49x on the third bidding day led by retail investors

SAR Televenture FPO: The follow-on public offering of SAR Televenture Ltd, a telecommunications infrastructure provider, began its subscription on Monday, July 22, and will end on Wednesday, July 24.

The price band for the FPO has been set at ₹200 to ₹210 per equity share. In its filing to the stock exchanges, SAR Televenture stated that it allocated 20.35 lakh equity shares to 11 funds at ₹210 each, totaling ₹42.74 crore.

The firm is a telecommunications infrastructure provider that specializes in the installation and commissioning of telecom towers and FTTH in India.

As of May 31, 2024, the business had erected 413 towers on lease in West Bengal, Bihar, Uttar Pradesh, Chandigarh, Odisha, Jharkhand, Himachal Pradesh, Punjab, and the Andaman and Nicobar Islands.

On November 8, 2023, the telecom infrastructure company was listed on the National Stock Exchange (NSE). According to the Red Herring Prospectus (RHP), the SAR Televenture IPO, valued ₹24.75 crore, was a completely fresh offering of 4,500,000 equity shares with no offer for sale (OFS) component.

On Monday's session, SAR Televenture share price closed 2.41% down at ₹237 on NSE.

SAR Televenture FPO details

SAR Televenture announced that it intends to raise ₹450 crore through a rights offering and FPO. It includes a rights offering of up to ₹300 crore in shares and a ₹150 crore FPO.

In FY25, the company intends to use the proceeds to the tune of ₹273 crore to set up fibre-to-the-home (FTTH) network solutions, ₹42.5 crore to set up an additional 1,000 4G/5G telecom towers, ₹30 crore for incremental working capital requirements, and the balance for general corporate purposes.

The rights offer comprises 1.5 crore equity shares of ₹2 each, with an issue price of ₹200 per rights share.

Existing shareholders will get one rights share for each equity share held on the record date of July 9, 2024, the business stated.

SAR Televenture FPO subscription status

SAR Televenture FPO subscription status is 7.49 times, on day 3.

The retail portion was subscribed 6.52 times, and NII portion was booked 8.34 times. The QIB portion booked 8.31 times.

The company has received bids for 4,01,42,500 shares against 53,62,725 shares on offer, according to data on chittorgarh.com.

SAR Televenture FPO subscription status was 70%, on day 1, and the issue was booked 1.81 times on the second bidding day. 

SAR Televenture FPO GMP today

SAR Televenture FPO GMP today is +10. This indicates SAR Televenture share price were trading at a premium of ₹10 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, SAR Televenture FPO expected listing price was indicated at ₹220 apiece, which is 4.76% higher than the IPO price of ₹210.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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