SAR Televenture soars 300 percent in two years; IPO lot now worth ₹4,22,000 as stock opens at ₹209

Mumbai, 11 September: SAR Televenture (BSE: 91900, NSE: SARTELE) has rewarded early investors and delivered returns in excess of 300% in the 24 months since its listing. That is, whoever bought the shares in the IPO at ₹55 per share (with a lot size of 2,000 shares) now holds ₹4,22,000 worth of shares (₹3,12,000 profits). In this regard, SAR Televenture has shown a remarkable ability to create wealth in a short period of time.

SAR Televenture Limited is an entity from India that is engaged in passive telecommunications infrastructure services such as establishing and commissioning Passive 4G and 5G towers and Optical Fibre Cable (OFC) systems. It was incorporated in May 2019 as a private limited company and became a public limited company as of April 2023.

Current Share Price Performance

On Thursday, SAR Televenture’s stock closed at ₹200, down 4.51% on the prior close of ₹209.45. The stock opened at ₹209 on the NSE, and we suspect that interest is still high. The stock traded to an intraday high of ₹211 and an intraday low of ₹195.70. The stock has recovered reasonably well from the support area closest to ₹190, and with the increasing volumes, this must mean new buying. Resistance would sit towards ₹240, so equity market watchers would think there is more upside in the near term.

Strengthening Digital Infrastructure Through Tikona Stake

In a strategic development, SAR Televenture announced a Share Purchase Agreement with L&T Finance, aiming to acquire a 19.93% stake in Tikona Infinet Private for a total value of ₹149.50 crore. The Share Purchase Agreement includes an immediate payment of ₹30 crore.

Meanwhile, the remaining amount will be settled over a share swap, in line with valuations agreed to with Tikona’s majority shareholders in a recent transaction. The acquisition is anticipated to simplify ownership, support Tikona’s next phase of growth, and enhance SAR Televenture’s stake in the broadband and digital infrastructure space.

From Market Debut to Multibagger Status

On November 8, 2023, SAR Televenture made its market debut with a trading price of ₹105 per share, representing almost double its IPO price of ₹55 on the NSE SME platform. The company raised ₹24.75 crore through its public issue, which opened for subscription on November 1 and closed on November 3.

The enthusiasm from investors for SAR Televenture’s IPO was beyond expectations, as the IPO was subscribed 267x overall and 715 times by non-institutional investors, 222 times by retail investors, and 77 times by qualified institutional buyers.

Outlook

The strong market performance of SAR Televenture, along with the recent strategic acquisition in Tikona, should lead to sustained growth momentum. Investors should be looking for sustained volumes and a breakout above resistance near ₹240 as indicators of the start of the next move up for this stock.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations