SRM Contractors IPO: here are 10 key things to know from RHP before subscribing
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10 key things to know from RHP before subscribing
(1).SRM Contractors IPO details
SRM Contractors IPO that opened for subscription on Tuesday, the 26th of March will remain open for subscription till Thursday, the 28th of March 2024.
The SRM Contractors IPO pricing range has been set by the construction company at ₹200 to ₹210 per equity share of face value of ₹10. The book construction issue will be listing both on the BSE (Bombay Stock Exchange) and the (NSE) National Stock exchange.
An applicant must apply for a minimum 70 shares (lot size ) and multiples there after. This Retail investors are needed to invest a minimum of ₹14,700.
Also Read- TAC Infosec IPO fully subscribed on day 1 led by retail investors; details here
(2). SRM Contractors IPO allotment and listing detail
The allotment for the SRM Contractors IPO is anticipated to be completed on Monday, April 1, 2024,. With a provisional listing date of Wednesday, April 3, 2024, SRM Contractors IPO, will list on both the NSE and the BSE.
(3).SRM Contractors IPO; Objectives of the issue.
By issuing new shares, the mainboard SRM Contractors IPO hopes to raise ₹130.20 crore. Anchor investors have already invested ₹39.06 crore to the SRM Contractors IPO.
The Issue comprises of fresh Issue of up to 62,00,000* Equity Shares of SRM Contractors.
The Net Proceeds from the Issue, as per the RHP are likely to be utilised by SRM Contractors towards funding the following objects:
1. Funding capital expenditure requirements for the purchase of equipment/machineries;
2. Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the company.
3. Funding the working capital requirements of the company
4. Investment in Project Specific Joint Venture Projects
5. General Corporate Purpose.
(4).SRM Contractors IPO: about the company
SRM Contractors is into engineering, construction, and development business that specializes in building roads (including bridges), tunnels, slope stabilization projects, and other various civil construction operations, in the Union Territories of Jammu & Kashmir and Ladakh.
They provide construction work for infrastructure projects both as an item rate basis contractor and as an EPC contractor.
Additionally, SRM Contractors takes on subcontracting jobs for building infrastructure projects.
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(5).SRM Contractors Financials-
Between March 31, 2022, and March 31, 2023, SRM Contractors Ltd sw its profit after tax (PAT) rise by 6.71% to ₹187.46 crore while its revenue increased by 13.24% to ₹3006.51 Crore.
(6) SRM Contractors Peers–
Listed peers for SR Contractors include Man Infraconstruction Ltd. (PE of 32.72 times), ITD Cementation India Ltd (PE of 31.32 times), Likhitha Infrastructure Ltd ( PE of 20.19 times) Udayshivakumar Infra Ltd (PE of 12.37 times).
P/E Ratio or price to earnings ratio has been computed based on the closing market price of equity shares on BSE on September 15, 2023, divided by the Diluted Earnings Per Share as per the RHP.
(7) SRM Contractors Promoters
Sanjay Mehta, Ashley Mehta and Puneet Pal Singh are the promoters to the SRM Contractors Ltd.
(8). SRM Contractors registrar
The registrar to the SRM Contractor IPO are Bigshare Services Private Limited, while Interactive Financial Services Limited are the Book Running and Lead Managers to the issue
Also Read- SRM Contractors IPO opens today: GMP, review, subscription status, other details. Apply or not?
(9) SRM Contractors IPO key risks
a. SRM Contractor business is concentrated in the Union Territory of Jammu & Kashmir and Ladakh and is exposed to risks emanating from economic, regulatory and other changes in the Union Territory of Jammu & Kashmir and Ladakh.
b. SRM Contractor revenue is majorly concentrated from projects undertaken or awarded by government authorities in Union Territory of Jammu & Kashmir and Ladakh. Any adverse changes in the central or policies in the Union Territory of Jammu & Kashmir and Ladakh may lead to our contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on our business and results of operations.
(10) SRM Contractors IPO GMP
SRM Contractors grey market premium is +104. This indicates SRM Contractors share price were trading at a premium of ₹104 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of SRM Contractors share price was indicated at ₹ 314 apiece, which is 49.52% higher than the IPO price of ₹210.
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Published: 27 Mar 2024, 05:38 PM IST
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