SAR Televenture NSE SME GMP Today – SAR Televenture Ltd is gearing up to launch its maiden public issue under the NSE Emerge SME platform to raise around Rs 10 crores. As the expected IPO date of November 2022 approaches, there is a lot of interest among investors on the SAR Televenture NSE SME GMP today and the overall grey market premium trends for this issue. Let us take a closer look at the key details regarding SAR Televenture IPO GMP today.
About SAR Televenture Ltd and its Upcoming IPO
SAR Televenture Ltd is a communications and IT solutions provider focused on telecom infrastructure services in India. Headquartered in Hyderabad, the company has presence in Andhra Pradesh, Telangana, Karnataka and few other states. Some key details about SAR Televenture business and its upcoming SME IPO are:
- Incorporated in 2000, the company offers telecom infrastructure rollout and support services
- Key clientele includes Reliance Jio, Bharti Airtel, Vodafone Idea, BSNL, defense establishments etc
- IPO size is Rs 10.26 crores comprising fresh issue of 43 lakh shares
- Price band is Rs 26-28 per share, bid size of 4,000 shares
- Proceeds to fund working capital and general corporate purposes
- Company posted net profit of Rs 1.47 crores on revenue of Rs 49 crores in FY22
- IPO valuation asked is around 8.6x EPS based on FY22 annualized earnings
The public issue aims to fund the company’s plans for expansion and provide an exit to existing shareholders. Now let us analyze the SAR Televenture IPO GMP today.
SAR Televenture IPO GMP Today
The Grey Market Premium or GMP refers to the premium at which IPO shares trade in the unofficial grey market before listing on the stock exchanges. It is a key indicator of the expected listing gains for the IPO.
Some key points to note regarding SAR Televenture NSE SME GMP today:
- GMP represents the difference between grey market price and IPO issue price
- It reflects the sentiment, demand and supply dynamics for the IPO shares
- The GMP keeps changing based on news flow, analysis and investor discussions
- A strong GMP indicates solid listing gains while a weak premium signals muted investor interest
As per market sources, the unofficial GMP for SAR Televenture IPO today is around:
- Rs 3-4 – This signals the grey market price is around Rs 30-32 which is a premium of Rs 3-4 over IPO price band of Rs 26-28 per share.
- The positive yet modest GMP reflects decent investor interest for this small sized SME IPO.
- However, SME IPOs typically see high volatility in GMP closer to listing.
In summary, SAR Televenture IPO grey market premium of Rs 3-4 indicates reasonable investor demand as of today. But GMP has limited reliability and provides only a directional sense on listing prospects.
Key Factors Influencing SAR Televenture IPO Listing Gains
While GMP serves as a quick indicator on listing expectations, investors should assess the qualitative and quantitative factors that drive listing performance of IPOs:
1. Financial Performance
- SAR Televenture has delivered steady revenue growth of 13% CAGR over FY18-22 period
- Profitability has been volatile with EPS ranging from Rs 2 to Rs 5 over FY18-22 period
- Return ratios have moderated in recent fiscals with RoNW of 14% in FY22
While financials appear steady, the volatility in profits remains a concern impacting listing prospects.
2. Valuations and Pricing
- IPO is priced at P/E multiple of 8.6x based on FY22 annualized EPS of Rs 3.3
- This valuation appears reasonable compared to industry peers
- Issue price band of Rs 26-28 seems fairly priced without leaving much upside
The pricing strategy makes valuations reasonable but limits the scope for large listing pops.
3. Market Conditions
- Secondary markets have turned highly volatile amid global uncertainty
- Investor sentiment for SME IPOs remains selective and cautious currently
- Lack of fancy for SME stocks with niche business models in current environment
Challenging secondary market conditions pose risk of muted listing gains.
4. Analyst Opinion
- Most analysts have NEUTRAL outlook for SAR Televenture IPO listing
- Stretched valuations in recent SME IPOs make pricing key monitorable
- Steady base business provides stability but growth concerns remain
- Limited fancy for niche telecom infrastructure services play currently
Analysts expect modest 5-10% listing gains for SAR Televenture IPO given the market conditions.
Considering the multiple factors above, SAR Televenture IPO may see listing at par to slight premium over issue price unless strong aftermarket demand emerges. But performance outlook remains subdued.
Should You Invest in SAR Televenture IPO for Listing Gains?
Here is a perspective on the investment rationale for SAR Televenture IPO purely from listing gains outlook:
Positives to Consider
- Presence in fast growing telecom infrastructure services sector
- Reputed clientele comprising leading telecom operators
- Professional management and experienced promoter group
- Reasonable IPO valuations compared to industry peers
Factors Warranting Caution
- Volatile profitability and moderation in return ratios
- Size of issue is relatively small at Rs 10 crores
- High competition from larger players in telecom services space
- Muted investor fancy for niche business models currently
Final Verdict
The small size of the issue coupled with niche business model makes fancy limited for SAR Televenture IPO in current environment. Listing gains are expected to be muted at 5-10%.
Investors should avoid applying purely for listing premium and evaluate fundamentals, growth prospects and reasonable valuations as key parameters.
Overall, SAR Televenture IPO GMP of Rs 3-4 appears reasonable but overall listing outlook seems subdued. Investors should make applications as per risk appetite without getting swayed by GMP trends.
Frequently Asked Questions about SAR Televenture IPO GMP Today
Here are some common investor queries answered about SAR Televenture IPO grey market premium today:
What is the grey market price for SAR Televenture IPO?
The unofficial grey market price for SAR Televenture IPO is around Rs 30-32 which is a premium of Rs 3-4 over the issue price of Rs 26-28 per share. This represents the GMP today.
Why is SAR Televenture trading at low GMP despite decent financials?
The small size of the issue coupled with niche telecom infrastructure services business makes the fancy limited among grey market participants. Also, the pricing leaves limited upside. These are the key reasons for modest GMP trends currently.
How much listing gain can be expected for SAR Televenture IPO?
As per market analysts, SAR Televenture IPO is likely to see muted listing gains in the range of 5-10% over the issue price. Some analysts expect it to list around the issue price. Upside seems limited given the market conditions.
When will SAR Televenture IPO list after allotment of shares?
The listing of SAR Televenture IPO on NSE Emerge is likely within 8-10 working days from finalization of basis of allotment. Tentatively it is expected to list during the last week of November 2022 if the IPO is launched in mid-November.
Which are the key factors influencing the GMP for SAR Televenture?
Financial growth trends, valuations and pricing strategy, market conditions, analyst outlook and fancy among retail investors are some of the key factors influencing the grey market premium for SAR Televenture today.
How often does GMP fluctuate for SME IPOs? What causes this volatility?
The GMP for SME IPOs tends to be highly volatile right till the listing date. It fluctuates frequently based on market talk, issue descriptions, financial analysis and overall secondary market trends. Investors should track GMP movements but not take it as the final indicator.
Does high GMP always translate into strong listing gains?
Not necessarily. Many IPOs in the past have seen sharp correction in GMP closer to listing date and eventually delivered muted gains. Investors should not chase GMP but rather assess the fundamentals and qualitative factors.
Where can I track the SAR Televenture IPO GMP online?
The GMP can be tracked on websites like greysmarketpremium io, chaupal, livemarket, updation and on various telegram groups focused on discussing the grey market trends for upcoming IPOs.
What should be my application strategy for SAR Televenture IPO?
Investors are advised not to apply purely based on GMP as it has low reliability. Evaluate the IPO based on growth prospects, financial performance, valuations, risk profile and your portfolio needs. Apply only if fundamentals and business credentials meet your investment criteria.
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