SRM Contractors Secures ₹39 Crore from Anchor Investors Ahead of IPO Launch

26 Mar 2024 , 09:17 AM

Construction and development firm SRM Contractors successfully secured ₹39.06 Crore from three anchor investors on March 22, just ahead of the commencement of its public offering.

According to the company’s filing with the exchanges, it finalized the allocation of 18,59,900 equity shares to anchor investors at a price of ₹210 per equity share.

Among the anchor investors, Neomile Growth Fund – Series I emerged as the largest institutional investor, acquiring 9.05 lakh equity shares valued at ₹19 Crore. Additionally, Saint Capital Fund and Astorne Capital VCC – Arven purchased 4.77 lakh equity shares each, amounting to ₹10 Crore.

SRM Contractors, headquartered in Jammu & Kashmir, specializes in engineering, procurement, and construction (EPC) projects. Its upcoming initial public offering (IPO), slated to open on March 26 and close on March 28, aims to raise ₹130.20 Crore by offering 62 lakh equity shares at a price range of ₹200-210 per share.

Notably, the IPO consists solely of a fresh issue component, with no portion allocated for offer-for-sale. The company plans to utilize the entire proceeds from the IPO for various purposes, including the purchase of equipment/machinery, debt repayment, working capital requirements, investment in project-specific joint ventures, and general corporate purposes.

SRM Contractors specializes in road construction, including bridges, tunnels, slope stabilization works, and other civil construction activities primarily in the Union Territories of Jammu & Kashmir and Ladakh.