The SME IPO market is certainly heating up! Just when you thought the excitement was dying down, two new players, RNFI Services and SAR Televenture, are set to grab investor attention. With their respective IPO and FPO, these companies are looking to raise a combined ₹220.81 crore.
RNFI Services Ltd.
Let’s break down what these companies offer and why they might be worth looking at.
Offer Price | ₹98 – ₹105 per share |
Face Value | ₹10 per share |
Opening Date | 22 July 2024 |
Closing Date | 24 July 2024 |
Total Issue Size (in Shares) | 6,744,000 |
Total Issue Size (in ₹) | ₹70.81 Cr |
Issue Type | Book Built Issue IPO |
Lot Size | 1200 Shares |
Listing at | NSE SME |
RNFI Services is coming up with a fresh issue of 67.44 lakh shares priced between ₹98 to ₹105 per share. The total money the company aims to raise is ₹70.81 crore. There’s no offer for sale here, so all the money raised will be new money for the company. A small part of the issue, about 5.69%, is reserved for market makers.
The shares on offer are divided like this:
Investor Reservation | Allocation of Shares |
Market Makers | 3,84,000 shares (5.69%) |
Anchor Investors | 19,08,000 shares (28.29%) |
Qualified Institutional Buyers (QIBs) | 12,72,000 shares (18.86%) |
High Networth Individuals (HNIs) | 9,54,000 shares (14.15%) |
Non-Institutional Investors (NIIs) | |
Retail Investors | 22,26,000 (33.01%) |
Objectives
The company plans to use the money raised for these things:
- Boosting its working capital
- Buying more Micro ATMs, laptops, and servers
- Upgrading its technology systems
- Making potential acquisitions
- General corporate expenses
GMP
The current Grey Market Premium (GMP) for RNFI Services IPO is ₹40. This means shares are trading at a premium of ₹40 in the unofficial grey market. If this GMP holds, the expected listing price would be ₹145 (issue price of ₹105 + GMP of ₹40). That’s a potential gain of 38.10% over the issue price. Don’t base your investment decisions solely on GMP.
Company Overview
RNFI Services is a fintech company founded in 2015 that offers banking, digital, and government services across India. They provide business and customer solutions through online and mobile platforms. With a network of over 3.6 lakh partners and partnerships with 11 central banks, they facilitate financial inclusion across 28 states and 5 union territories. Their services include money transfers, Aadhaar-based payments, Micro ATMs, and more.
Financials
RNFI Services’ revenue dropped by 11.81% in the last financial year compared to the year before. However, its profit increased by 103.82%.
SWOT Analysis of RNFI Services Ltd.
STRENGTHS | WEAKNESSES |
---|---|
Growing demand for financial inclusion services in India Potential to expand services and product offerings Leverage technology to improve efficiency and scalability Make strategic acquisitions to broaden the reach | Decreasing revenue (-11.81% in FY24) Reliance on a small number of partner banks (11) Dependence on physical network of partners (may not scale well) |
OPPORTUNITIES | THREATS |
Growing demand for financial inclusion services in India Potential to expand services and product offerings Leverage technology to improve efficiency and scalability Make strategic acquisitions to broaden reach | Competition from other fintech companies and banks Regulatory changes in the financial services sector Economic slowdown impacting customer demand |
SAR Televentures Ltd FPO
FPO Details
Offer Price | ₹200 – ₹210 per share |
Face Value | ₹2 per share |
Opening Date | 22 July 2024 |
Closing Date | 24 July 2024 |
Total Issue Size (in Shares) | 7,142,857 |
Total Issue Size (in ₹) | ₹150 Cr |
Issue Type | Book Built Issue FPO |
Lot Size | 500 Shares |
Listing at | NSE SME |
SAR Televenture is back for a second round of fundraising. After a successful IPO last November, the company is looking to raise ₹450 crore through a follow-on public offer (FPO) worth ₹150 crore and a rights issue for existing shareholders worth ₹300 crore.
FPO Timelines
The FPO opens on July 22 and closes on July 24, with allotment expected on July 25. The shares are expected to list on the NSE SME on July 29. The price band for the FPO is set at ₹200 to ₹210 per share. Retail investors need to invest a minimum of ₹105,000 for 500 shares, while HNIs need to invest at least ₹210,000 for 1000 shares.
Event | Date |
FPO Anchor Bidding | July 19, 2024 |
FPO Subscription Opens | July 22, 2024 |
FPO Subscription Closes | July 24, 2024 |
Rights Issue Closes | July 22, 2024 |
FPO Objectives
The company plans to use the money raised from the FPO for:
- Expanding its Fiber-to-the-Home (FTTH) network to cover 3 lakh homes
- Building an additional 1000 4G/5G telecom towers
- Increasing its working capital
- General corporate expenses
GMP
The current Grey Market Premium (GMP) for SAR Televenture is ₹27. This means shares are trading at a premium of ₹27 in the unofficial grey market. If this GMP holds, the expected listing price would be ₹237 (issue price of ₹210 + GMP of ₹27). That’s a potential gain of 12.86% over the issue price. Don’t base your investment decisions solely on GMP.
Company Overview
SAR Televenture is in the telecom solutions business. It sets up 4G and 5G towers, installs optical fiber cables, and deals in telecom equipment across India. The company also leases out tower sites and other telecom infrastructure. With the ongoing 5G expansion, the company expects significant growth. To expand its operations, it recently acquired a trading company in the UAE. SAR Televenture will be listed on the NSE SME platform.
Financials
SAR Televenture has seen impressive growth in the last financial year. Revenue jumped by 281.87%, and profits surged by 297.92%.
SWOT Analysis of SAR Televenture Ltd.
STRENGTHS | WEAKNESSES |
---|---|
Strong growth record with high revenue and profit growth Existing infrastructure of towers and fiber optic cables Experienced management team Government’s push for digital infrastructure | Regulatory changes impacting the telecom industry Increase in input costs (e.g., steel, fiber) Technological advancements leading to the obsolescence of existing infrastructure Natural disasters or other unforeseen events impacting operations |
OPPORTUNITIES | THREATS |
Expanding into new geographic markets Diversification into other telecom services Growing demand for high-speed internet and data Partnerships with telecom operators | Regulatory changes impacting the telecom industry Increase in input costs (e.g., steel, fiber) Technological advancements leading to obsolescence of existing infrastructure Natural disasters or other unforeseen events impacting operations |
The Final Word
As with any investment, thorough due diligence is crucial. While the SME IPO market offers opportunities, it also carries inherent risks. Investors must carefully evaluate the company’s financials, business model, and market prospects before making investment decisions.
Ultimately, the success of these IPOs will depend on various factors, including market conditions, investor sentiment, and the companies’ ability to execute their growth plans.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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IPO | Current IPO | Upcoming IPO | Listed IPO
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.