SRM Contractors IPO: The public issue will begin for participation on March 26 and closes on March 28, 2024.
SRM Contractors, an EPC contractor based in Jammu and Kashmir, will launch its initial public offering on March 26. The public sale is a new issuance of 62 lakh shares. Before the IPO, the company raised Rs 39.06 crore from three principal investors.
10 Notable Points About SRM Contractors IPO!
- The IPO will be open for subscription on March 26 and end on March 28, 2024.
2. The range of prices for the issue has been set at Rs 200-210 per share.
SRM Contractors intends to raise Rs 130. 2 crore. The public offering is a totally new issuance of 62 lakh shares. On March 22, the anchor book opened for one day. The company received Rs 39.06 crore from three anchor investors.
3. The largest institutional investor in the anchor book was Neomile Growth Fund – Series I, which purchased 9.05 lakh equity shares worth Rs 19 crore. Saint Capital Fund and Astorne Capital VCC – Arven both purchased 4.77 lakh equity shares worth Rs 10 crore.
Half of the IPO size has been set aside for qualified institutional purchasers, 15% for non-institutional investors, and the remaining 35% for retail investors.
4. The company will spend Rs 31.5 crore of the funds on equipment. It will allocate Rs 46 crore as working capital, reserving Rs 10 crore for debt repayment. Additionally, it will spend Rs 12 crore on project-specific joint ventures, utilizing the remainder for general corporate objectives.
5. Investors may bid for a minimum of 70 equity shares and multiples of 70 thereafter. As a result, the minimum investment for regular investors would be Rs 14,000 (70 (lot size) multiplied by 200 (lowest price band). At the upper end, the bidding amount will rise to Rs 14,700.
6. SRM Contractors is largely involved in the construction of roads (including bridges), tunnels, slope stabilization works, and other civil construction activities. All these particularly in the union territories of Jammu & Kashmir and Ladakh.
7. In FY23, SRM Contractors made a net profit of Rs 18.75 crore, up from Rs 17.57 crore the previous year. Revenue rose from Rs 263.3 crore in FY22 to Rs 300.3 crore. In the first nine months of the current fiscal year, net profit was Rs 21.07 crore on a revenue of Rs 234.55. In December, the company had a borrowing of Rs 32.74 crore.
8. The book-running lead manager for the IPO is Interactive Financial Services, while the registrar is Bigshare Services. The company’s promoters include Sanjay Mehta, Ashley Mehta, and Puneet Pal Singh.
9. The company focuses its business operations in Jammu and Kashmir and Ladakh, rendering it susceptible to economic, regulatory, and other changes occurring in those union territories. A small number of customers provide the majority of the company’s revenue. The top five clients accounted for 80.77 percent of total revenue during the nine months ended December 31, 2023.
10. According to the RHP, the company will resolve the basis of allotment by April 1, credit shares to demat accounts by April 2, and list the stock on the NSE and BSE on April 3.
