SRM Contractors IPO Day 1: Offers Fresh Issue of 62 Lakh Shares

6 Apr 2024 , 02:13 PM

Jammu & Kashmir-based EPC contractor SRM Contractors' IPO opened today on March 26, offering a fresh issue of 62 lakh shares. Before the IPO, the company secured ₹39.06 Crore from three anchor investors.

The IPO subscription window will be open from March 26 to March 28, 2024, with a price band set at ₹200-210 per share.

On the first day of subscription, the retail portion was oversubscribed by 2.83 times, Non-Institutional Investors (NIIs) by 3.64 times, and the Qualified Institutional Buyer (QIB) category by 1.55 times.

SRM Contractors aims to raise ₹130.2 Crore solely through a fresh issue of 62 lakh shares.

The IPO allocation reserves half for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% for retail investors.

Utilization of proceeds includes equipment purchase (₹31.5 Crore), working capital (₹46 Crore), debt repayment (₹10 Crore), investment in project-specific joint ventures (₹12 Crore), and general corporate purposes.

The minimum bid lot comprises 70 equity shares, with subsequent multiples of 70, requiring a minimum investment of ₹14,000 at the lower price band.

SRM Contractors specializes in various civil construction activities such as road construction, bridge building, and slope stabilization works in Jammu & Kashmir and Ladakh.

The basis of allotment is slated for finalization by April 1, with shares expected to be credited to demat accounts by April 2 and listing on the NSE and BSE by April 3, as per the Red Herring Prospectus (RHP).

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