SRM Contractors to Launch ₹130 Crore IPO on March 26th

20 Mar 2024 , 09:51 AM

Construction and development firm SRM Contractors is set to unveil its Initial Public Offering (IPO) worth ₹130.20 Crore on March 26.

The IPO exclusively comprises a fresh issue of 62 lakh equity shares, devoid of any offer-for-sale component. Priced in the range of ₹200-210 per share, the offering is scheduled to conclude on March 28, with the anchor book opening on March 22 for a single day.

Allocation-wise, half of the IPO size is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% for retail investors. Interested investors can bid for a minimum of 70 equity shares and thereafter in multiples of 70. For retail investors, the minimum investment stands at ₹14,700 (for 70 shares) and reaches a maximum of ₹1,91,100 (for 910 shares) at the upper price band.

Headquartered in Jammu and Kashmir, SRM Contractors specializes in constructing roads, tunnels, and undertaking slope stabilization projects in the Union Territories of J&K and Ladakh. The company intends to utilize ₹31.5 Crore of the IPO proceeds for equipment procurement, allocate ₹46 Crore towards working capital, and earmark ₹10 Crore for debt repayment. Additionally, ₹12 Crore will be invested in project-specific joint ventures, with the remainder allocated for general corporate purposes. As of December, the company’s outstanding loan amounted to ₹32.74 Crore.

In terms of financial performance, SRM Contractors reported a net profit of ₹18.75 Crore in FY23, up from ₹17.57 Crore, while revenue surged from ₹263.3 Crore in FY22 to ₹300.3 Crore. For the nine-month period of the current fiscal year, net profit stood at ₹21.07 Crore on revenue of ₹234.55 Crore.

Interactive Financial Services has been appointed as the sole book running lead manager for the issue.