SAR Televenture Limited FPO

Apply 0
Avoid 0

1. Core Services: The company’s primary services include the installation and commissioning of telecommunication towers, including 4G and 5G towers. They also work with optical fiber cable (OFC) systems, which are essential for transmitting telecommunications signals and transporting voice and data traffic.

2. Network Equipment: In addition to tower installation and OFC systems, the company is involved in the sale of network equipment. This could include various components and hardware needed for the operation and maintenance of telecommunication networks.

3. Certifications and Registrations: The company holds ISO 9001:2015 certification, indicating a commitment to quality management. They are also registered as an Infrastructure Provider Category-I (IP-I) with the Department of Telecommunication (DOT). This registration permits them to lease and manage their infrastructure assets and provide them to licensees of telecom services.

4. Infrastructure Assets: The company owns and manages various telecommunication infrastructure assets, such as GBT/RTT/Pole sites and Outdoor Small Cell (ODSC) sites. They also have assets like dark fibers, right of way, duct space, and towers. These assets are leased or rented to Telecom Network Operators and other stakeholders in the industry.

5. Support Services: The company offers a range of support services, which include project management for laying ducts and optic fiber cables, construction of basic transmission and telecom utilities, dark fiber leasing, optical fiber network construction, and maintenance of ducts and optic fibers. They also provide optical fiber project turnkey services to Telecom Network Operators, Broadband Service Operators, and ISPs.

6. Geographic Reach: The company has a presence in multiple regions, including West Bengal, Bihar, Uttar Pradesh, and Punjab. They have provided an aggregate of 373 towers on lease in these areas, highlighting their footprint and relevance in the telecommunications infrastructure industry.

7. Passive Infrastructure Provider: The company operates as a passive telecommunication infrastructure provider, focusing on the installation and commissioning of towers and the use of OFC systems. “Passive infrastructure” typically refers to the physical assets that support the active components used in telecommunication services. This model allows them to serve as a vendor for Telecom Service Providers (TSPs) by offering cost-effective and quality services.

8. Industry Presence: The company has gained a presence in the telecommunications industry as a Telecom Service Provider (TSP) vendor. This signifies their role in providing critical infrastructure and services to telecom network operators.

Competitive Strengths

i. Growing presence in telecommunications Circles with high growth potential
ii. Experienced and dedicated senior team across key functions
iii. Efficient Business Model

Objects of the SAR Televenture Limited FPO:

The company proposes to utilize the Net Proceeds towards funding the following objects: i. Funding setting up of Fiber-to-the-Home (FTTH) network solutions for 3,00,000 Home Passes; ii. Funding setting up of an additional 1000 number of 4G/5G telecom towers; iii. Funding incremental working capital requirement of the Company; and iv. General Corporate purposes.
DRHP of SAR Televenture Limited FPO
RHP of SAR Televenture Limited FPO

SAR Televenture Limited FPO Details:

Open Date: Jul 22 2024
Close Date: Jul 24 2024
Total Shares: 7,142,857
Face Value: ₹ 2 Per Equity Share
Issue Size: 150.00 Cr.
Lot Size: 500 Shares
Issue Price: ₹ 200 - 210 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 29 2024

Promoters And Management:

i. Rahul Sahdev, aged forty- seven (48) years, is the Chairman & Managing Director of the Company. He holds a degree in Advance Diploma in Business Management from National Business Management College, Australia. He holds a degree in Diploma in Marketing Department from Australian International College of Business also he holds the degree of Master of Business Administration in Marketing from Sydney University. He is associate with the Company since February 02, 2023. He has 18 years of experience in the field of marketing. Currently he looks after marketing and business development in the Company. ii. Praveen Tandon, aged fifty (50) years, is the Executive Director and Whole-time Director of the Company. He holds a degree in Bachelor in Engineering from Nagpur University. He has over 25 years of experience in Procurement of Passive Infrastructure, Electronics, Project Management, Marketing, and Customer Services Sales in Telecom Sector. He is expert in supervising logistics operations & ensuring timely execution, while adhering to transit guidelines and also demonstrated excellence in handling contracts, closure of deals, Contract Management. He is having depth knowledge in Contract Negotiations, Closure and Vendor contract management. He has been involved in Customer Contract management and Account management during Tenure with wellknown Companies iii. Chandra Prakash Srivastava, aged fifty-six (57) years, is the Non-Executive Director of the Company. He holds BE (Production & Industrial Engineering), Allahabad in 1987. During his 36 years of experience, he acted as Telecom Sourcing & Business Development Veteran, having worked with most of the Telecom Companies in India at the Senior Management level. He has moved into an entrepreneurial role and he has been providing the consulting services to various companies associated with Telecom. He has been associated with the Company since June 30, 2023.

Financials of SAR Televenture Limited FPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 473 3,246 12,412
Other Income 2 5 5
Total Revenue 475 3,252 12,417
Cost of materials consumed 0 2,115 9,968
Employees Benefit Expenses 126 137 148
Other Expenses 285 424 534
EBITDA 65 576 1,766
OPM (%) 13.74% 17.71% 14.22%
Depreciation & Amortisation 40.91 103.15 137.08
EBIT 24 473 1,629
Finance Cost 22 45 22
PBT 3 427 1,607
Tax -1 34 40
PAT 4 394 1566
NPM (%) 0.78% 12.10% 12.61%
No.of Shares 221.42 221.42 221.42
EPS 0.02 1.77 7.07

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
SAR Televenture Limited 124 16 7.07 29.7 210 465
Suyog Telematics Limited 167 63 59.38 22.7 1,350 1,439
Kore Digital Limited 104 11 28.67 54.6 1,566 628
* All the data is as per FY24.

Recommendation on SAR Televenture Limited FPO:

Review and Recommendation of SAR Televenture by team IZ is 5/10. 1. SAR Televenture Limited specializes in telecom infrastructure, particularly the installation and commissioning of telecom towers across India. 2. SAR Televenture Limited operates primarily as a telecommunication infrastructure provider. As of May 31, 2024, the company has installed 413 telecom towers on lease in several Indian states, including West Bengal, Bihar, Uttar Pradesh, Chandigarh, Odisha, Jharkhand, Himachal Pradesh, Punjab, and the Andaman & Nicobar Islands. 3. Support Services In addition to its core operations, SAR Televenture Limited offers comprehensive support services, including: i. Project Management                          ii. Construction iii. Dark Fiber Leasing                            iv. Optical Fiber Network Construction v. Maintenance                                       vi. Turnkey Services 4. Recent Acquisitions On January 03, 2023, SAR Televenture Limited acquired 100% of the equity share capital of SAR Televentures F.Z.E, United Arab Emirates (formerly known as Shoora International – F.Z.E) from Shoora Capital Limited. The subsidiary focuses on laying and installing fiber cables and trading network equipment, enhancing SAR Televenture Limited’s operational footprint and capabilities. 5. Competitive Landscape The telecom solution provider sector is highly competitive, with numerous players offering diverse services. SAR Televenture Limited differentiates itself through its extensive expertise, industry knowledge, and experience. 6. The Revenue has Increased from Rs.4.7 Crores in FY22 to Rs.124 Crores in FY24. 7. The EBITDA has Increased from 65 Lakhs in FY22 to 17 Crores in FY24. 8. The PAT has Increased from 4 Lakhs in FY22 to 15 Crores in FY24. 9. As per FY24, CFO/EBITDA is 1.01, and EPS is 7.07, 10. Market Capitalization is 465 Crores and P/E is 29.7x based on FY24.

Lead Manager of SAR Televenture Limited FPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of SAR Televenture Limited FPO:

  1. Link Intime India Private Limited

Company Address:

SAR Televenture Limited P. No – 346A, 2 nd Floor Udyog Vihar, Phase-4, Gurugram-122016, Phone: +91 8587050050 Email: info@sarteleventure.com Website: https://www.sarteleventure.com/

Discussion on SAR Televenture Limited FPO:

Leave a Reply