Shares of this microcap company clocked 5 percent upper circuit in Wednesday’s trading session after entering into a revenue-sharing agreement with BSNL. The company was recently listed in November 2023, on NSE SME, the shares were listed at Rs. 105 per share, 90.9 percent higher than the issue price of Rs. 55.
With a market capitalization of Rs. 433 crores, the shares of Sar Televenture Ltd started Wednesday’s trading session positively at Rs. 275.15 compared to its previous close of Rs. 274.80. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 288.50 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had entered into a revenue-sharing agreement with Bharat Sanchar Nigam Limited (BSNL) to deliver BSNL telecom services (including fixed, wireless, broadband, etc.) to end users at Gurgaon, Haryana.
The scope of this project involves constructing, expanding, and maintaining the Optical Fiber Cables (OFC) network within residential and commercial complexes, as well as establishing interconnections between buildings using OFC. Furthermore, the agreement is valid for 10 years and is renewable thereafter on similar or mutually agreed terms, and revenue is evenly distributed, with each of the two companies receiving an equal 50 percent share.
Earlier, the company had entered into a revenue-sharing agreement with Bharat Sanchar Nigam Limited (BSNL) to deliver BSNL telecom services (including fixed, wireless, broadband, etc.) to end users at Noida (Urban).
Coming onto the company’s financial statements, the revenue zoomed by 37 percent from Rs. 26.17 crores during H2FY23 to Rs. 35.78 crores in H1FY24. In addition, the net profits increased by 18 percent from Rs. 3.43 crores to Rs. 4.06 crores during the same period.
The company aims to expand its presence in the Indian telecommunications industry by providing comprehensive telecommunication solutions to telecom network operators. Moreover, the company plans to install 300 new 5G and 4G towers based on a Letter of Intent and has allocated Rs. 12.39 crores for this capital expenditure project
Headquartered in Haryana, Sar Televenture Ltd was incorporated in 2019. The company is a provider of telecommunication solutions to Telecom Network Operators engaged in the installation and commissioning of 4G and 5G Towers, Optical Fibre Cable (OFC) Systems, and dealing in network equipment.
Written by Vaibhav Patil
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