This SME IPO looks decent compared to other. But the market condition is not good as even better sme companies are failing to withhold. So can be applied with a high risk on hand.
It will be a record if it gives listing gain as none of the aryaman issue have gone up on listing day I can always take a call post listing .Stay away.instead buy East india securities or angel fiber from secondary market
My advice is to stay away from all IPO''s specially from SME''s until market sentiments improve. I am in huge loss in Sarveshwar foods which appeared to be a good ipo.
As an expert, I suggest retail investors to apply only after selling to your broker or buy after listing at far lower price in comparison to issue price. However a good SME company, it should ideally price itself at half of PE Ratio and half of PBV of laggardest profit making peer on the main board.
Market sentiment is at weakest. When there was irrational exuberance for SMEs and people were short of idea to generate alpha return on main board, they began to flocked around SMEs. Now when Small cap and midcap companies on the mainboard have corrected meaningfully and there is further possibility of correction (NIFTY till 9600), these alpha return seekers have evaporated and LMs also have left retail investors high and dry. The trailer we have already seen in Sarveshwar and Inflame, Upcoming SMEs are going to be full movie. Because these LMs are pricing the issue so high that they can spin and rinse (निचोड़) the retail investors.