Telecom stock engaged in providing Telecommunication solutions to Telecom Network Operators jumped 4 percent in the day’s trade following the announcement to raise funds of upto Rs. 450 Crores through Rights issue and FPO.
Price Action
With a market capitalization of Rs. 409.50 Crores, the shares of Sar Televenture Limited were trading at Rs. 273 per equity share, up 3 percent from its previous day’s close price of Rs. 265.55.
Rights Issue
The Board of Directors of Sar Televenture Limited has considered and approved raising funds of upto Rs. 300 Crores by way of rights issue in the ratio of 1:1 where one equity share will be issued for every one equity share held as on the record date by the applicant.
The rights issue will be open from July 15, 2024, to July 22, 2024, where 1.5 Crore fully paid equity shares of Rs. 2 each will be issued at Rs. 200 per share, with a lot size of 500 equity shares and July 9, 2024, is fixed as the record date to determine the eligible shareholders of the company for the rights issue.
Further Public Offer
In addition, the Board of Directors of the Company has also approved a further public offer (FPO) of the equity shares of the company at a price band of Rs. 200 to Rs. 210 per equity share, for a consideration of Rs. 150 Crores.
About the Company
Sar Televenture Limited 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.
Also read
Sar Televenture Limited already has installed 373 4G/5G Towers which are leased onward to Airtel. Given the expected LOIs from telecom giants like AIRTEL, Vodafone, Jio, etc. the company is planning to install another 6000+ 5G/4G Towers in the next 2 years.
Financials and Ratios
Its revenue from operations grew by 282 percent from Rs. 32 Crores in FY23 to Rs. 124 Crores in FY24, accompanied by profits of Rs. 4 Crores to Rs.16 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 133 percent, and a return on capital employed (ROCE) of 80.8 percent. It has reported a debt-to-equity ratio of 2.48.
Written by: Bharath K.S
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