SRM Contractors Limited

SRM Contractors Limited

listed
₹14,000Min. investment
  1. Bid start
    26 Mar
  2. Bid end
    28 Mar
  3. Allotment
    28 Mar
  4. Release of funds
    2 Apr
  5. Demat transfer
    1 Apr
  6. Listing
    3 Apr

About SRM Contractors Limited

Price range₹200 – ₹210
IPO type
Regular
Lot size70 shares
Issue size₹130.2Cr
RHP/DRHP
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About  SRM Contractors Limited

Incorporated in 2008, SRM Contractors Limited is an engineering, construction and development company. It primarily undertakes the construction of roads (including bridges), tunnels, slope stabilisation works, and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh.
The company works as an EPC (Execution, Procurement, Construction) contractor executing entire projects, as well as on an item rate basis. It also undertakes sub-contracting assignments for infrastructure construction projects from other entities.
It has completed 38 infrastructure projects since 2008 with an aggregate contract value of ₹1,411 crore. As of 31 January 2024, its order book consists of 21 ongoing projects - 11 road projects, five tunnel projects, four slope stabilisation projects, and one other civil work, with a total order book value of ₹1,199 crore.
Its clients include National Highways & Infrastructure Development Corporation, Ministry of Road Transport & Highways, Konkan Railway Corporation, Jammu and Kashmir Economic Reconstruction Agency, Border Road Organisation, Public Works Department of Jammu & Kashmir, Northern Railway, Irrigation & Flood Control Department of J&K, and J&K Rural Roads Development Agency.
Between FY21 and FY23, it saw a CAGR rise of 23% in its revenue from operations and 31% in its profit. Moreover, the highway construction industry in India is projected to grow at a rate of 133% by 2025, which could be beneficial for the company.
And now, SRM Contractors Limited is coming out with its initial public offer (IPO). The IPO will be a fresh issue, and the money will be utilised to repay borrowings, fund the capital expenditure for the purchase of new machinery, fund working capital requirements, invest in project-specific joint venture projects, and for general corporate purposes. Its shares will be listed on the NSE and BSE.
Here are key details about the SRM Contractors Limited IPO:
Company NameSRM Contractors  Limited Company TypePrivate
Company Established On2008

Financial snapshot

ParticularsFY21FY22FY23Q3FY24
Revenue₹ 160 crore₹ 263 crore₹ 300 crore₹ 234 crore
Net Profit/Loss₹ 8.2 crore₹ 17.5 crore₹ 18.7 crore₹ 21.0 crore

Here’s a quick look at SRM Contractors Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

  1. Proven track record of 14 years, having completed 32 road projects, three tunnels, and one slope stabilisation work, primarily in the difficult hilly terrain of Jammu & Kashmir and Ladakh.
  2. The company uses terrain expertise to cluster its projects geographically in the Union Territory of Jammu and Kashmir, and Ladakh hence facilitating efficiency and profitability.
  3. Reduced dependence on third-party providers by focusing on equipment ownership with its fleet of 228 construction equipment and machinery, having invested ₹35 crore and ₹4 crore between FY21 - FY23, and Q3 FY24, respectively.
  4. Strong financial performance with EBITDA margins of 11%, 12%, 12%, and 15% in FY21, FY22, FY23, and Q3 FY24, respectively. 
  5. Mitigation of contractual risks and facilitation of on-time project completions due to its in-house integrated model of designing, procurement of key materials, and ownership of construction equipment worth ₹73 crore as of 31 December 2023.

Risks and threats

  1. The business is concentrated in the Union Territory of Jammu & Kashmir and Ladakh, exposing it to risks of economic, regulatory and other changes.
  2. Derives a significant portion of its revenue from its top 5 clients, accounting for 80% of the total revenue as of Q3 FY24.
  3. Subject to seasonal fluctuations, which might affect its cash flows.
  4. Operates a working capital intensive business with long implementation periods, making up a net working capital of ₹86 crore as of 31 December 2023. 
  5. The tunnel construction business is subject to challenges such as complex geology, difficult terrain, environmental concerns, lack of skilled labour, and financial constraints.

SRM Contractors Limited IPO details

**** SRM Contractors Limited IPO date

According to the offer document filed by the company with the SEBI, the SRM Contractors IPO’s opening date – in other words, the SRM Contractors IPO launch date – will be 26th March 2024. The SRM Contractors IPO closing date is 28th March 2024. After this, investors will be updated about the allotment status on 1st April 2024.
Investors, who have been allotted shares, can expect them to be credited to their demat account on 2nd April 2024. The SRM Contractors IPO listing date is 3rd April 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.

**** SRM Contractors Limited IPO Price Band

The IPO is a fresh issue. The SRM Contractors IPO price band has been set between ₹200 and ₹210 per share. Interested investors can choose a price within this band to apply for the IPO.
The SRM Contractors IPO listing price will be determined on 3rd April 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.
**** SRM Contractors Limited IPO Lot size
The SRM Contractors IPO details have been declared. The SRM Contractors IPO lot size is set at 70 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the SRM Contractors IPO issue size is approx ₹130 crore.

How to pre-apply for the SRM Contractors Limited IPO?

You can pre-apply for the SRM Contractors Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.
Follow these steps to pre-apply for the IPO:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover tab, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, look for the ‘SRM Contractors Limited IPO’ tab and click on it
  5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
  6. Confirm and click on ‘Pre-Apply’
  7. Accept the mandate on your UPI app

How to apply for the SRM Contractors Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the SRM Contractors Limited IPO, here we are listing out the steps for you.
When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the SRM Contractors Limited IPO on Upstox:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover tab, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, look for the ‘SRM Contractors Limited IPO’ tab and click on it
  5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
  6. Confirm and click on ‘Apply’
  7. Accept the mandate on your UPI app

How to check the SRM Contractors Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.
Here’s a step-by-step guide on how to check the SRM Contractors Limited IPO allotment status:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover page, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, you will find the ‘View all’ option
  5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
  6. In the ‘IPO’ tab, click on ‘My applications’ 
  7. In ‘My applications’, under the History section, your SRM Contractors Limited IPO allotment status will be mentioned
Check Allotment Status

Open a demat account with Upstox to apply for the SRM Contractors Limited IPO

To apply for the SRM Contractors Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.
Here is a step-by-step guide on how to open a demat account with Upstox:
  1. Click here to visit the demat account opening page on the Upstox website. 
  2. Enter your phone number and other essential details to begin opening a demat account.
  3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
  4. Complete the e-verification using the OTP sent to your registered mobile number.
This is all it takes to open a demat account with Upstox. Easy and quick, right?
Open Demat Account

Upstox – trading app to apply for the SRM Contractors Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.
You can apply for the SRM Contractors Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.
In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of SRM Contractors Limited ?

The issue size of the SRM Contractors Limited is 130.2 Cr.

What is 'pre-apply' for SRM Contractors Limited ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will SRM Contractors Limited shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.