SRM Contractors IPO day 3: Issue subscribed over 47 times so far, check key details

SRM Contractors IPO, which is entirely a fresh issue of 62 lakh shares of a face value of ₹10 each, received a strong demand from the investors on the third day of subscription. The issue was booked over 47 times till 1:30 pm on the final day of the subscription on Thursday, March 28. SRM Contractors IPO was launched on March 26.

The IPO, a book-built issue of ₹130.2 crore, received bids for 20.9 crore shares against 43.4 lakh shares on offer, resulting in over 47 times bidding overall so far, the NSE data showed.

Non-institutional investors booked their portion 136 times, placing bids for 12.7 crore shares over 9,30,000 shares available for them. In the retail investors' category, the issue has so far been subscribed over 32 times, garnering applications for over 7 crore shares against 21.7 lakh shares offered.

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Qualified institutional buyers bought their reserved portion 2.43 times, sending bids for 30,13,640 shares over 12,40,100 shares set aside for them.

Of the total issue size, SRM Contractors offered 20% of shares to qualified institutional buyers, 15% to non-institutional investors, 35% to retail investors and 30% to anchor investors. The company raised ₹39.06 crore from anchor investors on March 22, 2024.

Interactive Financial Services Ltd is the book-running lead manager of the IPO. Bigshare Services Pvt Ltd is the registrar to the public issue.

SRM Contractors IPO GMP

As on 28 March, SRM Contractors IPO GMP, or grey market premium, is ₹110 per share as per market reports. This means SRM Contractors shares are trading higher by ₹110 per share in the grey market compared to its issue price of ₹210 per share, indicating an upbeat listing for the company.

Grey market premium (GMP) is a rough indicator of how IPO stock could debut on the listing day. Although grey market trading is not approved by the stock exchanges and SEBI, many investors track GMP before IPO shares list on the exchanges. It is important to note that market sentiments and volatility on the listing day can impact the stock’s listing.

SRM Contractors IPO price band, share allotment, and other key details

SRM Contractors IPO price band was fixed at ₹200 to ₹210 per share, with minimum lot size of 70 shares for an application. A minimum investment of ₹14,700 is required from retail investors. The minimum lot size for investment for small non-institutional investors is fixed at 14 lots or 980 shares. For big non-institutional investors, the minimum lot size is fixed as 69 lots or 4,830 shares.

The company is likely to finalise the allotment of IPO shares on Monday, April 1, 2024. Non-allottees will start getting refunds on April 2 and shares will be transferred to the demat accounts of the successful applicants on the same day.

SRM Contractors IPO will list shares on BSE, NSE with a tentative listing date fixed as Wednesday, April 3.

About SRM Contractors Ltd

SRM Contractors is a construction and development company, which is mainly into the construction of roads, bridges and tunnels. It is also engaged in works related to slope stabilisation and other construction activities in Jammu and Kashmir, and Ladakh.

The construction company works on an EPC basis and on a unit-price basis for infrastructure projects and subcontracts infrastructure construction projects.

Its road projects involve planning, construction, and maintenance of roads, bridges, and highways in Jammu and Kashmir and Ladakh. Tunnel projects focus on designing and building tunnels for avalanche and landslide protection, as well as expanding and upgrading existing tunnels in the same regions.

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