SRM Contractors IPO: Oversubscribed 28.74 Times; Allotment Tentatively Set for April 1

28 Mar 2024 , 12:19 PM

SRM Contractors IPO witnessed significant interest from retail and non-institutional investors (NIIs) on both days of its offering period, which began on March 26 and ends on March 28.

On the third day of subscription, at the time of writing, the subscription status stood at 28.74 times, with NIIs oversubscribing by 78.97 times, retail investors by 22.55 times, and qualified institutional buyers (QIBs) by 2.43 times. 

The IPO price band for SRM Contractors is set between ₹200 to ₹210 per share, with a face value of ₹10. Bids can be made for a minimum of 70 shares and in multiples thereof. Allocation percentages are set at 15% for NIIs, up to 50% for QIBs, and at least 35% for retail investors.

On March 22, the company raised ₹39 Crore from anchor investors.

Tentatively, the allotment date for SRM Contractors IPO shares is April 1, with shares expected to be credited to demat accounts on April 2, which also serves as the refund day. SRM Contractors shares are likely to be listed on BSE and NSE on April 3.

SRM Contractors specializes in civil construction projects in the Union Territories of Jammu & Kashmir and Ladakh, including highways, tunnels, bridges, and slope stabilization projects.

The IPO consists of a fresh issue of up to 62,00,000 equity shares, valued at ₹130.20 Crore, with no offer-for-sale component.

The company intends to utilize the net proceeds for various purposes such as working capital requirements, repayment of existing loans, participation in project-specific joint ventures, and general corporate purposes, including machinery and equipment procurement.

Bigshare Services Pvt Ltd serves as the registrar, while Interactive Financial Services Ltd is the book running lead manager for the SRM Contractors IPO.

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