SRM Contractors IPO: Subscription date, price band, lot size and key details

SRM Contractors IPO details: The initial public offering (IPO) of SRM Contractors is live for subscription from March 26 until March 28. The allocation of shares to anchor investors took place on Friday, March 22.

The construction and development company has set a price band of ₹200-₹210 per share for the ₹130.20 crore IPO. While 50% of the public issue is reserved for qualified institutional buyers (QIBs), 35% is earmarked for retail investors, and 15% for non-institutional investors (NIIs).

SRM Contractors IPO: All you need to know

• SRM Contractors IPO: March 26-March 28
• IPO price band: ₹200-₹210
• IPO lot size: A minimum of 70 equity shares
• Issue size: Fresh issue of 62 lakh equity shares
• SRM Contractors IPO shares allotment date: April 1, 2024
• SRM Contractors IPO listing on the BSE and the NSE: April 3, 2024

SRM Contractors is engaged in the construction of roads, bridges, tunnels, and slope stabilisation, among other civil construction activities in Jammu, Kashmir, and Ladakh.

The company undertakes construction work as an engineering, procurement and construction (EPC) contractor and on an item-rate basis for infrastructure projects. It is registered as a Class A contractor with the Public Work (R&B) Department, Jammu and Kashmir.

"We are pre-qualified to bid independently on projects, tendered by departments of governmental authorities and other entities funded by the Government of India of contract value up to ₹30,000 lakh and ₹50,000 lakh for EPC contracts pertaining to construction of roads (including bridges) and for construction of tunnel respectively," the firm said in its IPO prospectus.

Sanjay Mehta, Managing Director of SRM Contractors, said, "We believe that the funds raised through this IPO will play a crucial role in enhancing our equipment portfolio and investment in joint venture projects, thereby fortifying our position. It will enable us to meet our working capital requirements more efficiently, further strengthening our operational capabilities. We perceive this as a significant chapter and are genuinely excited about it".

During FY23, SRM Contractors earned a net profit of ₹18.75 crore, up from ₹17.57 crore in FY22. The revenue also increased from ₹263.3 crore to ₹300.3 crore.

The proceeds generated from the IPO will be used to fund capital expenditure requirements to purchase equipment and machinery, repay outstanding debts, invest in joint venture projects, fund the working capital requirement and general corporate purposes.

Interactive Financial Services Limited is the book-running lead manager for the issue, while ICICI Bank is the sponsor bank.

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