SRM Contractors listing: Shares list at premium of 2.5% to IPO price on NSE
Upstox
2 min read • Updated: April 3, 2024, 11:22 AM
Summary
SRM Contractors IPO lists at a premium of 2.5% on the NSE at ₹215.25 per share. The ₹130 crore public issue of Jammu and Kashmir-based company was subscribed 86.57 times.
Shares of SRM Contractors made a tepid debut on the stock exchanges on Wednesday, April 3. The stock opened at a premium of 2.5% at ₹215.25 against the issue price of ₹210 per equity share on the NSE. On the BSE, SRM Contractors shares are listed at ₹225, up 7.14%.
The ₹130 crore initial public offering (IPO) of the Jammu and Kashmir-based company was subscribed 86.57 times during the March 26-28 bidding period.
The non-institutional investors picked 214.94 times the portion set aside for them, qualified institutional buyers brought 59.59 times the quota allotted and retail investors bid 46.97 times the reserved portion.
The IPO, which had set a price band of ₹200-₹210, was entirely a fresh issue of ₹62 lakh shares.
About SRM Contractors
SRM Contractors, established in 2008, is an engineering, construction and development company. It undertakes projects such as constructing roads, tunnels, slope stabilisation and other construction activities in Jammu and Kashmir, and Ladakh.
It works as an execution, procurement and construction (EPC) contractor, executing projects on an item rate basis and undertaking sub-contracting assignments for infrastructure construction projects.
Since 2008, the company has completed 38 projects with an aggregate contract value of ₹1,411 crore. As of January 31, 2024, it has 21 ongoing projects. These include 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 the National Highways and Infrastructure Development Corporation Limited (NHIDCL), the Ministry of Road Transport and Highways, the Jammu and Kashmir Economic Reconstruction Agency (JKERA) and the Border Road Organisation (BRO), among others.
Between FY21 and FY23, SRM Contractors' CAGR rose 23% in its revenue from operations. The CAGR from profits increased 31%. The highway construction industry in India is expected to grow by 133% by 2025, which could benefit the company.
The funds from the issue will be used to purchase equipment and machinery, repay debt, invest in joint venture projects, working capital requirements, and general corporate purposes.
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