SRM Contractors IPO subscribed 3.56 times on day 1: Check price band, lot size and other key details

SRM Contractors Ltd IPO was subscribed more than 3 times on the first day of subscription on Tuesday, March 26, driven by strong demand from non-institutional investors (NIIs). The initial public offer (IPO) received bids for over 1.54 crore shares compared to 43.4 lakh shares on offer, according to NSE data till 5:30 pm. The issue was subscribed 3.56 times.

The IPO received a strong response from retail investors on the first day as shares set aside for them were subscribed 3 times. In retail category bids for a total of 64,82,350 shares were received as against 21,70,000 equity shares reserved for the segment.

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Non-Institutional Investors’ category was also booked 4.03 times on Day 1. Applications for 37,48,500 equity shares were received compared to 9,30,000 equity shares on offer.

The qualified institutional buyers (QIB) portion was also fully booked. Bids for 19,43,130 equity shares were received against 12,40,100 equity shares set aside for the category, reflecting 1.57 times booking for the segment on the first day.

SRM Contractors IPO anchor investors

SRM Contractors Ltd raised ₹39.05 crore from three anchor investors ahead of the launch of the issue. The company allotted 18,59,900 equity shares at a price of ₹210 per equity share, the upper end of the price band. Neomile Growth Fund, Saint Capital Fund and Astorne Capital VCC Arven are the three anchor investors.

SRM Contractors Ltd IPO subscription, price band, issue size and lot size

The ₹130.20 crore public offer of SRM Contractors Ltd comprises a fresh issue of 62 lakh equity shares and no offer for sale (OFS) component. The issue will close for subscription on March 28.

The company has fixed the price band of the book-built issue at ₹200-210 per share. The lot size is 70 shares for retail investors. The minimum investment by retail investors is ₹14,700.

Bigshare Services Pvt Ltd is the registrar for the IPO and Interactive Financial Services Ltd is the book running lead manager.

SRM Contractors IPO share allotment date and listing

SRM Contractors Ltd is expected to announce the share allotment on April 1, 2024. It will initiate refunds and Demat transfers on April 2. SRM Contractors shares are expected to be listed on the BSE and NSE on Wednesday, April 3.

SRM Contractors IPO Objects

SRM Contractors has proposed to utilise the IPO proceeds to fund capital expenditure for buying equipment and machinery.

It will also utilise proceeds for full or part repayment and prepayment of certain outstanding secured borrowings. It will also finance working capital requirements of the company and invest in project specific joint venture projects besides funding general corporate purposes.

About SRM Contractors

SRM Contractors is an engineering construction and development company. It is primarily engaged in the construction of roads, tunnels, slope stabilisation works and other miscellaneous civil construction activities in Jammu and Kashmir, and Ladakh. It recently made a foray into Uttarakhand market also.

The company has completed 38 infrastructure construction projects having an aggregate contract value of ₹1,411.65 crore so far. The projects completed include 32 road projects, three tunnel projects, one slope stabilisation works and two other miscellaneous civil construction activities.

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