SRM Contractors IPO opens today: GMP, review, subscription status, other details. Apply or not?

SRM Contractors IPO: The initial public offering (IPO) of SRM Contractors Limited has hit the Indian primary market today. The public issue will remain open till 28th March 2024. The construction company has fixed SRM Contractors IPO price band at ₹200 to ₹210 per equity share. The book build issue is proposed for listing on BSE and NSE. The mainboard IPO aims to raise ₹130.20 crore through the issuance of fresh shares. SRM Contractors IPO has already raised ₹39.06 crore from anchor investors. Meanwhile, shares of SRM Contractors Limited have gained strength in the grey market. According to stock market observers, SRM Contractors share price is available at a premium of ₹67 in the grey market today.

SRM Contractors IPO subscription status

By 12:18 PM on day one of bidding, the public issue has been subscribed 1.45 times whereas its retail portion has been booked 1.39 times. The NII portion of the initial offer has been booked 1.49 times. The QIB portion of the mainboard issue has been booked 1.54 times.

Important SRM Contractors IPO details

1] SRM Contractors IPO GMP today: Shares of the company are available at a premium of ₹67 in the grey market today. On the weekend, it was quoting ₹52 per share gain for a potential share allottee.

2] SRM Contractors IPO price band: The construction company has fixed the price of the book build issue at ₹200 to ₹210 apiece.

3] SRM Contractors IPO subscription: The issue will remain open from 26th to 28th March 2024.

4] SRM Contractors IPO size: The construction company aims to raise ₹130.20 crore from its initial public offer.

5] SRM Contractors IPO lot size: One lot of the mainboard IPO comprises 70 shares of the company.

6] SRM Contractors IPO allotment date: The tentative date of share allocation is 1st April 2024 i.e. on Monday next week.

7] SRM Contractors IPO registrar: Bigshare Services Private Limited has been appointed as the official registrar of this public issue.

8] SRM Contractors IPO listing: The book build issue is proposed for listing on BSE and NSE.

9] SRM Contractors IPO listing date: The likely date for share listing is 3rd April 2024 i.e. on Wednesday next week.

SRM Contractors IPO: Apply or not?

10] SRM Contractors IPO review: On whether one should apply for the mainboard IPO or not, Parth Shah, Research Analyst at StoxBox said, “Due to its expertise and know-how to undertake infrastructure construction projects in difficult terrains, the company has also emerged as a key player in the infrastructure construction industry in the Union Territories of Jammu & Kashmir and Ladakh and as a result has developed technical capabilities to execute projects in hilly/ challenging terrain in the region. The company also has a track record of completing large-scale government projects. During recent years, various factors such as rapid urbanization, rapid freight movement, and demand for improved infrastructure have been pushing tunnel construction and development throughout the country. Therefore, due to this increased focus on infrastructure, the tunneling sector is expected to propel with a strong pipeline network of 1,300 tunnels, spanning around the country with a length of more than 3,600 km. Hence, bridging such an infrastructure demand gap and capitalizing on such market opportunity, SRM Contractors Limited has emerged as a key player in the infrastructure construction industry.”

“By executing several road, tunnel, and slope stabilization projects over the past 15 years, SRM Contractors Limited has gained the experience and has developed technical capabilities to execute projects in hilly/challenging terrain in the region. Therefore, looking at the future scenarios, we remain positive on the Indian infrastructure story and believe that SRM Contractors Ltd will emerge as one of the reliable partners in nation-building. Hence, we advise the market participants to subscribe to this issue and hold them for a medium to long-term investment horizon,” the StoxBox expert said.

Advising investors to apply for the short term, Avinash Gorakshkar, Head of Research at Profitmart Securities said, ‘SRM Contractors Limited is an engineering construction company with strong growth print. The company has a strong order book as well. However, the poor track record of the merchant banker may work as an impediment to the mainboard IPO. The public issue is small in size as the construction company aims to raise around ₹130 crore from its offer. So, an investor can apply for the listing gain only.”

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