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SRM Contractors IPO opens tomorrow: Here are 10 things to know about the issue

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SRM Contractors is an engineering firm that specialises in all types of civil construction work in the Union Territories of Jammu & Kashmir and Ladakh. Its projects include building highways (including bridges), tunnels, slope stabilisation projects, and other smaller projects.

In the Union Territories of Jammu & Kashmir and Ladakh, the company has become an important player in the infrastructure development sector and has the technical know-how to carry out projects in the region’s steep and difficult terrain.

Also Read: SRM Contractors IPO: Company raises 39 crore from anchor investors ahead of public issue

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In order to fulfill certain eligibility requirements for large-scale projects, such as those pertaining to specific types of experience, the company enters into contracts either independently or through project-specific joint ventures with other infrastructure and construction entities.

The company’s order book, including subcontracting tasks, has contracts valued at 1199.31 crore as of January 31, 2024, 834.69 crore as of March 31, 2023, 257.88 crore as of March 31, 2022, and 432.57 crore as of March 31, 2021, according to the Red Herring Prospectus (RHP). Ashley Mehta, Puneet Pal Singh, and Sanjay Mehta are the company’s promoters.

Man Infraconstruction Ltd (P/E of 46.87), ITD Cementation India Ltd (P/E of 46.56), Likhitha Infrastructure Ltd (P/E of 17.42), and Udayshivakumar Infra Ltd (P/E of 21.17) are the company’s listed peers.

Between March 31, 2022, and March 31, 2023, the company’s profit after tax (PAT) climbed by 6.71% while its revenue increased by 13.24%.

Also Read: SRM Contractors IPO: Price band set at 200-210 apiece, check issue details, key dates, more

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SRM Contractors IPO details.

Here are the 10 key things to know about SRM Contractors IPO:

SRM Contractors IPO date: The issue is scheduled to open Tuesday, March 26, and will end on Thursday, March 28.

SRM Contractors IPO price band: The price band has been set in the range of 200 to 210 per equity share of the face value of 10.

SRM Contractors IPO lot size: 70 equity shares make up each lot in the IPO. Bids can be placed for multiples of 70 shares, with a minimum bid of 70.

Anchor investors: SRM Contractors IPO has raised 39 crore from three anchor investor on Friday, March 22.

Also Read: Bharti Hexacom IPO: Airtel arm’s public issue to open on April 3, TCIL to offload 15% stake; Details here

SRM Contractors IPO details: The issue comprises of fresh issue of up to 62,00,000 equity shares aggregating up to 130.20 crore. There is no offer-for-sale component.

SRM Contractors IPO objectives: The company plans to finance the following objectives with the net proceeds from the offering: covering working capital requirements; repaying outstanding secured loans in full or in part; participating in joint venture ventures tailored to individual projects; and general corporate purposes. Funding will also be provided for the necessary capital expenditures for the acquisition of machinery and equipment.

SRM Contractors IPO listing date and allotment details: The tentative timeline for SRM Contractors IPO share allotment date is Monday, April 1. Refunds will begin on Tuesday, April 2, and shares will be credited to allottees’ demat accounts the same day as the refund date. SRM Contractors share price is likely to be listed on BSE and NSE on Wednesday, April 3.

Lead Manager and Registrar of SRM Contractors IPO: The book running lead manager for the SRM Contractors IPO is Interactive Financial Services Ltd, and the registrar is Bigshare Services Pvt Ltd.

SRM Contractors IPO reservation: It has set aside not less than 15% for non-institutional institutional investors (NII), a maximum of 50% of the shares for qualified institutional buyers (QIB), and a not less than 35% of the shares for retail investors.

Also Read: IPOs this week: One mainboard, 12 SME public issues to open for subscription; check full list here

SRM Contractors IPO GMP today: SRM Contractors IPO GMP is +68. This indicates SRM Contractors share price were trading at a premium of 68 in the grey market, according to investorgain.com.

The expected listing price of SRM Contractors shares was indicated at 278 apiece, which is 32.38% more than the IPO price of 210, taking into account the upper end of the IPO pricing band and the present premium on the grey market.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: GConnect Logitech IPO to open for bidding on March 26: Check key dates, IPO price, other details

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 25 Mar 2024, 02:50 PM IST

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