The initial public offer (IPO) of SRM Contractors received 1,54,35,840 bids for shares as against 43,40,100 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (26 March 2024). The issue was subscribed 3.56 times.
The issue opened for bidding on Tuesday (26 March 2024) and it will close on Thursday (28 March 2024). The price band of the IPO is fixed at Rs 200 to 210 per share. An investor can bid for a minimum of 70 equity shares and in multiples thereof.
The issue comprises a fresh issue of 62,00,000 equity shares. The company proposed to utilize the net proceeds from the fresh issue to fund capital expenditure requirements for the purchase of equipment and machinery; full and part-payment of certain outstanding secured borrowings; incremental working capital requirements, investment in project specific JV projects and the balance towards general corporate purposes.
Ahead of the IPO, SRM Contractors on Friday, 22 March 2024, raised Rs 39.05 crore from anchor investors. The board allotted 18.59 lakh shares at Rs 210 each to 3 anchor investors.
SRM Contractors is an engineering construction and development company undertaking construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in hilly, challenging and difficult terrains and geography such as the Union Territories of Jammu & Kashmir and Ladakh.
The company executes construction both as an EPC contractor and on an item rate basis for infrastructure projects. It undertakes contracts independently or whenever required, through project-specific joint ventures (JVs) with other infrastructure and construction entities when a project requires meeting specific eligibility requirements of certain large projects, including requirements relating to specific experiences.
The firm reported a net profit of Rs 21.07 crore and sales of Rs 234.55 crore for the nine months ended on 31 December 2023.