SAR Televenture Limited, the telecommunication infrastructure provider, has set the price band for its follow-on public offer (FPO) at ₹200 to ₹210 per equity share, according to a press release issued by the company on Thursday, July 4. The rights issue is scheduled to open for subscription on July 15 and close on July 22, and the record date for the rights issue will be July 9.
The company aims to raise ₹450 crore through a combination of an FPO of ₹150 crore and a rights issue of ₹300 crore worth of shares to fund its expansion plans. SAR Televenture has decided that one rights share will be allocated to every equity shareholder holding one share in the company, according to the release.
The rights issue will have 1.5 crore fully paid-up equity shares of ₹2, at the price of ₹200 per equity share. The company plans to use the money raised from the additional issue to fuel its growth.
“The company proposes to utilise the net proceeds towards funding setting up of Fiber-to-the-Home (FTTH) network solutions for 3,00,000 Home Passes estimated to be ₹273 crore,” it said in the statement.
In addition to the current infrastructure, as many as 1,000 telecom towers supporting 4G or 5G are expected to be built for ₹42.50 crore. The company also needs working capital, for which the expenses are to be nearly ₹30 crore.
SAR Televenture shares closed 1.39 per cent higher at ₹269.25, as compared to the previous close at ₹265.55 on July 3. The shares also hit a record high of ₹278.80 in Thursday's trading session.
The telecommunications infrastructure provider was listed on the National Stock Exchange (NSE) on November 8, 2023. As of July 4, 2024, its market value was ₹403.43 crore.
