SRM Contractors IPO: All you need to know

The initial public offering (IPO) for SRM Contractors is set to open for public issue on March 26, 2024.

The construction and development company’s IPO consists of a fresh issue of 62 lakh shares worth Rs 130.20 crore and will close on March 28, 2024.

Price band for the IPO is set between Rs 200 to Rs 210 per share. The minimum lot size for an application is 70 shares, requiring a minimum investment of Rs 14,700 for retail investors. Substantial and non-institutional investors (sNII) need to invest in 14 lots (980 shares) amounting to Rs 205,800, whereas for business non-institutional investors (bNII), it’s 69 lots (4,830 shares) requiring an investment of Rs 1,014,300.

The IPO is managed by Interactive Financial Services Ltd as the book running lead manager, with Bigshare Services Pvt Ltd serving as the registrar for the issue.

SRM Contractors plans to utilise the net proceeds from the IPO for various purposes, including funding capital expenditure for equipment and machinery, repayment of outstanding secured borrowings, working capital requirements, investment in project-specific joint ventures, and general corporate purposes.

With the IPO’s Grey Market Premium (GMP) standing at Rs 30, as of March 20, 2024, at 05:33 PM, and considering the price band of Rs 210, market estimates suggest an expected listing price of Rs 240 per share, indicating a potential gain of 14.29 per cent per share.

Established in 2008, SRM Contractors Limited specialises in construction and development projects, particularly in the Union Territories of Jammu and Kashmir and Ladakh

. The company operates as an Engineering, Procurement, and Construction (EPC) contractor, undertaking various infrastructure projects, including roads, bridges, tunnels, and slope stabilisation works, both independently and through subcontracting arrangements.