SRM Contractors saw a tepid debut on the stock exchanges today. On the National Stock Exchange (NSE), SRM Contractors opened at ₹215.25 per share, marking a modest 2.5% increase from the issue price of ₹210. Meanwhile, on the Bombay Stock Exchange (BSE), the share price opened at ₹225 apiece, reflecting a more notable 7.14% uptick compared to the issue price.
Market experts had predicted SRM Contractors’ share price to debut in the range of ₹270–₹290 per share.
The IPO subscription status of SRM Contractors stood at an impressive 86.57 times on the third day of bidding, according to BSE data. Both retail investors and non-institutional investors showed strong interest in the offering throughout the three days of bidding.
SRM Contractors reserved 50% of its shares for qualified institutional buyers (QIBs), allocated 15% to non-institutional investors (NIIs), and set aside the remaining 35% for retail investors. The IPO price band was set between ₹200 to ₹210 per share, with a face value of ₹10. Investors could bid for a minimum of 70 shares and in multiples thereof.
The company raised ₹39 crore from anchor investors on Friday, March 22, ahead of its IPO launch.
SRM Contractors primarily operates in the Union Territories of Jammu & Kashmir and Ladakh, specializing in various civil construction projects. Its portfolio includes tunnel construction, slope stabilization projects, roadways (including bridges), and other minor infrastructure works.
With its expertise in executing projects in the challenging terrains of Jammu & Kashmir and Ladakh, SRM Contractors has emerged as a significant player in the infrastructure development sector.
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 proceeds from the IPO will be utilized for working capital requirements, project-specific joint venture participation, repayment of existing secured loans, and general corporate purposes. Additionally, funds will be allocated for the acquisition of machinery and equipment.
Interactive Financial Services Ltd is the book running lead manager for the SRM Contractors IPO, while Bigshare Services Pvt Ltd is the registrar.
