SRM Contractors Limited IPO: An Overview and Corporate Insight
SRM Contractors Limited (SCL) was founded in 2008, and it specializes in building roads (including bridges), tunnels, slope stabilization projects, and other construction projects in the Union Territories of Jammu & Kashmir and Ladakh. The business subcontracts infrastructure construction projects and works as an EPC contractor for infrastructure projects, billing on a unit-price basis.
Following are the company’s principal business verticals:
- Road Projects: These include designing, building, widening, upgrading, strengthening, and/or improving roads, bridges, and highways in the Union Territories of Jammu and Kashmir and Ladakh, as well as their maintenance.
- Tunnel Projects: These include the design and building of new tunnels, as well as cut-and-cover tunnels for the protection of landslides and avalanches, as well as caverns. They also include the expansion, upgrading, restoration, and/or strengthening and improvement of existing tunnels in the Union Territories of Jammu and Kashmir and Ladakh, including the creation of niches or modifications in niches.
- Slope Stabilization Works: As part of the slope stabilization work, reinforced embankment structures are planned and built.
Other non-essential civil construction tasks include building private and public housing, constructing drainage systems, and installing irrigation and flood control measures.
Grey Market Premium Analysis and IPO Timelines – SRM Contractors Limited IPO
| Date | GMP |
| March 22 | ₹50 |
| March 21 | ₹40 |
| March 20 | ₹30 |
| March 19 | ₹25 |
The last update for SRM Contractors IPO was on March 22, 2024, at 01:31 PM. The GMP is ₹50. The expected listing price of SRM Contractors IPO, with a price band of 210.00, is ₹260 (cap price + today’s GMP). 23.81% is the anticipated percentage gain or loss per share.
Pricing Details and Lot Size – SRM Contractors Limited IPO
The price band for SRM Contractors IPO is ₹200 to ₹210 per share.
Book-Running Lead Managers and Registrar – SRM Contractors Limited IPO
The SRM Contractors IPO’s book-running lead manager is Interactive Financial Services Ltd, and the issue’s registrar is Bigshare Services Pvt Ltd.
Offer for Sale and IPO Size Breakdown – SRM Contractors Limited IPO
The Rs 130.20 crore SRM Contractors IPO is a book-built offering. This is a completely new 0.62 crore share offering.
IPO Timelines at a Glance – SRM Contractors Limited IPO
| Event | Date |
| IPO Opening Date | March 26, 2024 |
| IPO Closing Date | March 28, 2024 |
| IPO Allotment Date | April 1, 2024 |
| Initiation of Refunds | April 2, 2024 |
| Credit of Shares to Demat | April 2, 2024 |
| IPO Listing Date | April 3, 2024 |
Utilisation of Fresh Issuance and Technological Advancements – SRM Contractors Limited IPO
The following goals are to be funded by the Net Proceeds from the Issue, according to the company’s proposal:
1. Finance the necessary capital expenditures for the acquisition of machinery and equipment.
2. Prepayment and/or full repayment of some outstanding secured borrowing that the business has taken out.
3. Financing the company’s needs for working capital.
4. Investment in joint venture projects that are project-specific.
5. The corporate purpose in general.
Conclusion
SRM Contractors Limited undertakes construction works both as an EPC contractor and on an item-rate basis for infrastructure projects. The Company also undertakes sub-contracting assignments for infrastructure construction projects. It has a track record of successful execution of road, tunnel, and slope stabilization projects in the difficult terrain of union territories of Jammu & Kashmir and Ladakh. The Company has emerged as a key player in the infrastructure construction industry in the Union Territories of Jammu & Kashmir and Ladakh and has developed technical capabilities to execute projects in hilly/challenging terrain in the region. SCL is an ISO 9001:2015 certified company and is also registered as a class A contractor with the Public Work (R&B) Department, Jammu & Kashmir.
As a result of the growth of its road and tunnel construction business, as well as the recent government initiatives and support to develop the infrastructure of union territories of Jammu & Kashmir and Ladakh, the company has further forayed into executing other infrastructure projects such as standalone bridges, larger slope stabilization works, and other miscellaneous civil construction activities to capitalize on such rising opportunities. As of January 31, 2024, its order book consists of 21 infrastructure construction projects. Its order book in terms of the value of contracts, including subcontracting assignments, was Rs. 1199.31 cr. as of January 31, 2024.
Frequently Asked Questions (FAQ) – SRM Contractors Limited IPO
What does SRM Contractors Limited specialise in?
SRM Contractors Limited was founded in 2008, and it specializes in building roads, including bridges, tunnels, slope stabilization projects, and other construction projects in the Union Territories of Jammu & Kashmir and Ladakh. The business subcontracts infrastructure construction projects and works as an EPC contractor for infrastructure projects, billing on a unit-price basis.
What is the primary purpose of SRM Contractors Limited’s IPO?
The goals that are to be funded by the net proceeds from the issue, according to the company’s proposal include financing the necessary capital expenditures for the acquisition of machinery and equipment, prepayment and/or full repayment of some outstanding secured borrowing that the business has taken out, financing the company’s needs for working capital, investment in project-specific joint venture projects, and corporate purpose in general.
Who are the lead managers for SRM Contractors Limited’s IPO?
Interactive Financial Services Ltd is the Book Running Lead Manager (BRLM) to the issue.
How is the IPO structured in terms of new issuance and offer for sale (OFS)?
The Rs 130.20 crore SRM Contractors IPO is a book-built offering. This is a completely new 0.62 crore share offering.
What is the lot size and minimum investment for retail investors in the SRM Contractors Limited IPO?
SRM Contractors Limited IPO lot size is 70 shares, and the minimum amount is ₹14,700.
What is the price band for the SRM Contractors Limited IPO?
The price band for SRM Contractors Limited IPO is ₹200 to ₹210 per share.
How has the Grey Market Premium (GMP) trend for SRM Contractors Limited IPO?
The last update for SRM Contractors IPO was on March 22, 2024, at 01:31 PM. The GMP is ₹50. The expected listing price of SRM Contractors IPO, with a price band of 210.00, is ₹260 (cap price + today’s GMP). 23.81% is the anticipated percentage gain or loss per share.
When does the IPO open and close for subscription?
SRM Contractors Limited IPO will open for subscription on March 26, 2024, and close on March 28, 2024.
When is the allotment date for the SRM Contractors Limited IPO?
The allotment date is set for April 1, 2024.
When is SRM Contractors Limited expected to be listed on the stock exchanges?
The anticipated listing date for SRM Contractors Limited IPO is April 3, 2024, on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
