SAR Televenture FPO Oversubscribed 7.5 Times
Jul 24, 2024 18:43
SAR Televenture's Rs 150 crore FPO was subscribed 7.5 times, following a fully subscribed rights issue. The company plans to use the proceeds for expanding its FTTH network and telecom towers.
Photograph: PTI Photo
New Delhi, Jul 24 (PTI) The Rs 150-crore follow-on public offering (FPO) of telecommunication infrastructure provider SAR Televenture was booked more than seven times on the final day of the bidding on Wednesday after receiving overwhelming response from all categories of investors.
This came after the company's Rs 300-crore rights issue was fully subscribed on July 22.
The company's FPO, priced between Rs 200 and Rs 210 per equity share, was open for subscription during July 22-24.
The share sale was subscribed 7.49 times, with bids for around 4.01 crore shares received against 53.63 lakh stocks offered, according to the data with stock exchanges.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 8.31 times, non-institutional investors 11.26 times and the portion reserved for retail investors witnessed a subscription of 6.51 times.
On July 19, the company raised nearly Rs 43 crore from anchor investors including Intuitive Alpha Investment Fund, Negen Undiscovered Value Fund, Minerva Emerging Opportunities Fund Ltd, BoFA Securities Europe SA and Benani Capital.
Earlier, SAR Televenture announced that it was looking to raise Rs 450 crore through a rights issue and an FPO. This comprises a rights issue of shares worth up to Rs 300 crore and an FPO of up to Rs 150 crore.
The company proposes to utilise the proceeds to the tune of Rs 273 crore to set up fibre-to-the-home (FTTH) network solutions, Rs 42.5 crore for setting up an additional 1,000 4G/5G telecom towers, Rs 30 crore for incremental working capital requirements and the balance amount for general corporate purposes in FY 2025.
The rights issue consisted of 1.50 crore equity shares of Rs 2 each at an issue price of Rs 200 per rights share. The issue opened on July 15 and closed on July 22.
"Existing shareholders will get one rights share for one equity share held as on record date July 9, 2024," the company had announced.
The company is a telecommunication infrastructure provider engaged primarily in the business of installing and commissioning telecom towers and FTTH in India.
As of May 31, 2024, the company has installed an aggregate of 413 towers on lease across West Bengal, Bihar, Uttar Pradesh, Chandigarh, Odisha, Jharkhand, Himachal Pradesh, Punjab, and Andaman & Nicobar Islands.
Pantomath Capital Advisors Private Limited is the sole book-running lead manager of the issue.
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