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  4. SRM Contractors IPO opens for subscription: 5 things to know

SRM Contractors IPO opens for subscription: 5 things to know

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Upstox

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2 min read • Updated: March 26, 2024, 10:26 AM

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Summary

SRM Contractors IPO is open for subscription from March 26 to March 28. The construction and development company has set a price band of ₹200-₹210 per share for the ₹130.20 crore public issue.

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SRM Contractors is engaged in the construction of roads, bridges, tunnels, and slope stabilisation.

SRM Contractors IPO opened for subscription on Tuesday, March 26. The public issue, which has set a price band of ₹200-₹210, will close on Thursday, March 28.

The ₹130.20 crore IPO of the construction company is a fresh issue of 62 lakh equity shares. The offering is reserved for qualified institutional buyers (50%), retail investors (35%) and non-institutional investors (15%).

SRM Contractors IPO: 5 things to know

  • SRM Contractors IPO date: March 26 to March 28.
  • Lot size: 70 equity shares
  • Issue type: A fresh issue of 62 lakh shares.
  • SRM Contractors allotment date: April 1, 2024.
  • SRM Contractors IPO listing: April 3, 2024.

SRM Contractors is a construction company engaged in building roads, tunnels, bridges, slope stabilisation and other activities in Jammu & Kashmir and Ladakh. It provides engineering, procurement, and construction services on both EPC and item-rate bases for infrastructure projects.

"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...We perceive this as a significant chapter and are genuinely excited about it".

IN FY23, the company reported a net profit of ₹18.75 crore, an increase from ₹17.57 crore in FY22.

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

To know more about the IPO listing schedule and details of upcoming IPOs, click here.