Multibagger NSE SME stock surged more than 7% during Monday’s trading session following the announcement of a Share Purchase Agreement to acquire 100% equity stakes in M/s Blue Lotus Support Services Private Ltd and M/s Whitefield Communications Private Limited for a total amount of ₹800 crore. Since its IPO price, SAR Televenture has experienced an increase of approximately 240% as of today.
The deal represents a crucial strategic achievement for SAR Televenture, as it will reinforce its standing in India’s fast-growing telecom infrastructure industry and anticipates enhancing its operational presence throughout the southern part of the country, according to the company in an exchange filing.
The purchase of Blue Lotus Support Services and Whitefield Communications fits perfectly with SAR Televenture’s main business strategy of providing comprehensive telecom infrastructure solutions, which encompass tower management, fiber deployment, and network maintenance.
This acquisition also signifies SAR Televenture’s strategic entry into rapidly growing markets throughout Karnataka, Tamil Nadu, Kerala, Telangana, and Andhra Pradesh. These states are experiencing a notable surge in data consumption and the rollout of 5G networks, making them essential areas for the expansion of telecom infrastructure. With the presence of Fusionnet Web Services Private Limited in Northern India, this acquisition will elevate SAR Televenture to a PAN India level.
“The acquisition of Blue Lotus Support Services and Whitefield Communications represents a natural progression in our growth journey. It enables SAR Televenture to strengthen its southern operations, enhance our service delivery capacity, and capitalize on emerging opportunities in India’s evolving digital and 5G ecosystem. The resulting synergies will reinforce our commitment to operational excellence and long-term value creation for all stakeholders,” said Rahul Sahdev, Managing Director, SAR Televenture.
Bumper Debut
On November 8, 2023, SAR Televenture launched on the market with an initial trading price of ₹105 per share, nearly twice its IPO price of ₹55 on the NSE SME platform. The firm successfully garnered ₹24.75 crore through its public offering, which was open for subscriptions from November 1 to November 3.
The response from investors to SAR Televenture’s exceeded all expectations, as the offering was subscribed 267 times overall, with non-institutional investors subscribing 715 times, retail investors at 222 times, and qualified institutional buyers at 77 times.
SAR Televenture share price today
SAR Televenture share price today opened at ₹178.05 apiece on the NSE, the stock touched an intraday high of ₹187.40 and an intraday low of ₹176.50 per share.
According to Anshul Jain, Head of Research at Lakshmishree, SAR Televenture share price is on the verge of forming a bullish 38-week-long double bottom pattern, showing early signs of a potential bullish reversal after sweeping the previous lows near ₹190. However, the structure remains unconfirmed as long as the stock trades below the key resistance zone.
A decisive close above ₹200 will act as a technical confirmation of the double bottom, paving the way for renewed upside momentum. Until such a breakout materializes, the stock should remain on an avoid list, as premature entries could expose traders to further volatility within the consolidation phase.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.