SRM Contractors IPO marks a significant venture in the construction sector, aiming to raise Rs 130.20 crores through a fresh issue of 0.62 crore shares.
Key Dates and Details:
- Subscription Period: March 26, 2024, to March 28, 2024
- Allotment Finalization: Expected on Monday, April 1, 2024
- Tentative Listing Date: Wednesday, April 3, 2024
- Listing Exchanges: BSE, NSE
Price Band and Lot Size:
- The IPO’s price band is set at ₹200 to ₹210 per share.
- Minimum lot size for application is 70 shares.
- Retail investors can participate with a minimum investment of ₹14,700.
- HNI investors are required to invest in 14 lots (980 shares), totaling ₹205,800, while bNII investors are encouraged to invest in 69 lots (4,830 shares), amounting to ₹1,014,300.
Management and Support:
- Book Running Lead Manager: Interactive Financial Services Ltd oversees the IPO process.
- Registrar: Bigshare Services Pvt Ltd manages the registration process for the issue.
Interested parties are advised to refer to the SRM Contractors IPO RHP (Red Herring Prospectus) for comprehensive information regarding the offering.
SRM Contractors IPO Details
| Parameter | Details |
|---|---|
| IPO Date | March 26, 2024 to March 28, 2024 |
| Listing Date | Wednesday, April 3, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹200 to ₹210 per share |
| Lot Size | 70 Shares |
| Total Issue Size | 6,200,000 shares (aggregating up to ₹130.20 Cr) |
| Fresh Issue | 6,200,000 shares (aggregating up to ₹130.20 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding Pre-Issue | 16,744,200 |
| Shareholding Post-Issue | 22,944,200 |
This table succinctly presents the key details of the SRM Contractors IPO, providing investors with essential information about the offering.
SRM Contractors IPO Timeline (Tentative Schedule)
| Event | Date |
|---|---|
| IPO Open Date | Tuesday, March 26, 2024 |
| IPO Close Date | Thursday, March 28, 2024 |
| Basis of Allotment | Monday, April 1, 2024 |
| Initiation of Refunds | Tuesday, April 2, 2024 |
| Credit of Shares to Demat | Tuesday, April 2, 2024 |
| Listing Date | Wednesday, April 3, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 28, 2024 |
It offers a clear and organized presentation of the SRM Contractors IPO timeline, providing investors with essential dates and events related to the offering.
SRM Contractors IPO Lot Size
Investors can bid for a minimum of 70 shares and in multiples thereof. The table below outlines the minimum and maximum investment options for retail investors and High Net Worth Individuals (HNI):
| Investor Type | Application Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 70 | ₹14,700 |
| Retail (Max) | 13 | 910 | ₹191,100 |
| S-HNI (Min) | 14 | 980 | ₹205,800 |
| S-HNI (Max) | 68 | 4,760 | ₹999,600 |
| B-HNI (Min) | 69 | 4,830 | ₹1,014,300 |
Investors are encouraged to consider these options while participating in the SRM Contractors IPO, ensuring alignment with their investment objectives and financial capabilities.
SRM Contractors IPO Reservation
SRM Contractors IPO offers a total of 6,200,000 shares, with the following allocation to different investor categories:
| Investor Category | Shares Offered | Percentage (%) | Maximum Allottees |
|---|---|---|---|
| Anchor Investors | 1,859,900 | 30.00% | NA |
| QIB | 1,240,100 | 20.00% | NA |
| NII (HNI) | 930,000 | 15.00% | |
| – bNII > ₹10L | 620,000 | 10.00% | 632 |
| – sNII < ₹10L | 310,000 | 5.00% | 316 |
| Retail | 2,170,000 | 35.00% | 31,000 |
| Total Shares Offered | 6,200,000 | 100.00% |
In the case of oversubscription, 31,000 Retail Investors will receive a minimum of 70 shares, while 316 sNII and 632 bNII investors will receive a minimum of 980 shares each.
SRM Contractors IPO Anchor Investors Details
| Details | Value |
|---|---|
| Bid Date | March 22, 2024 |
| Shares Offered | 1,859,900 |
| Anchor Portion Size (In Crore) | Rs 39.06 |
| Anchor lock-in period end date for 50% shares | May 1, 2024 |
| Anchor lock-in period end date for remaining shares | June 30, 2024 |
Insights:
SRM Contractors IPO successfully secured Rs 39.06 crore from anchor investors during the bidding process on March 22, 2024. The lock-in period for 50% of these shares ends on May 1, 2024, while the remaining shares will be released from lock-in on June 30, 2024.
SRM Contractors IPO Anchor Investors Details
| Details | Value |
|---|---|
| Bid Date | March 22, 2024 |
| Shares Offered | 1,859,900 |
| Anchor Portion Size (In Crore) | Rs 39.06 |
| Anchor lock-in period end date (50% shares) | May 1, 2024 |
| Anchor lock-in period end date (remaining shares) | June 30, 2024 |
Insights:
SRM Contractors IPO successfully raised Rs 39.06 crore from anchor investors during the bidding process on March 22, 2024. The anchor lock-in period for 50% of these shares expires on May 1, 2024, while the remaining shares will be subject to lock-in until June 30, 2024.
About SRM Contractors Limited
SRM Contractors Limited: Building Infrastructure for a Better Future
Established in 2008, SRM Contractors Limited is a dynamic construction and development company, dedicated to shaping the infrastructure landscape in the Union Territories of Jammu and Kashmir and Ladakh.
Core Business Activities:
- Road Projects: The company specializes in the planning, construction, and maintenance of roads, bridges, and highways, focusing on realignment, widening, upgradation, restoration, and strengthening initiatives.
- Tunnel Projects: SRM Contractors excels in the design and construction of tunnels, including avalanche and landslide protection measures. Their expertise extends to expansion, upgradation, restoration, and stabilization of existing tunnels.
- Slope Stabilization Works: The company undertakes reinforced embankment structures to stabilize slopes and ensure safety in challenging terrains.
- Miscellaneous Civil Construction: SRM Contractors is involved in a range of civil construction activities, encompassing government housing, drainage systems, irrigation, and flood protection projects.
Project Portfolio:
As of March 2024, SRM Contractors has successfully completed 37 infrastructure projects, with a total contract value of Rs. 77,088.00 lakhs. These projects include 31 road construction projects, 3 tunnel projects, 1 slope stabilization project, and 2 miscellaneous construction works. Notably, 29 of these projects were independently undertaken by the company, while 8 were executed through project-specific joint ventures.
Workforce Strength:
As of January 31, 2024, SRM Contractors boasts a dedicated workforce of 275 full-time employees, comprising specialists and skilled workers, committed to delivering excellence in every project undertaken.
SRM Contractors Limited stands as a beacon of quality, innovation, and reliability in the construction industry, driving progress and prosperity in the region
SRM Contractors Limited Financial Information (Restated Consolidated)
SRM Contractors Limited experienced a robust 13.24% increase in revenue and a noteworthy 6.71% rise in Profit After Tax (PAT) during the specified period. These figures signify the company’s steady growth trajectory and sound financial management.
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets (₹ Crore) | 168.87 | 137.36 | 120.22 | 112.47 |
| Revenue (₹ Crore) | 242.28 | 300.65 | 265.51 | 161.95 |
| Profit After Tax (PAT) (₹ Crore) | 21.07 | 18.75 | 17.57 | 8.27 |
| Net Worth (₹ Crore) | 37.24 | 63.16 | 44.41 | 26.85 |
| Reserves and Surplus (₹ Crore) | 67.48 | 46.41 | 42.89 | 25.32 |
| Total Borrowing (₹ Crore) | 42.32 | 47.16 | 31.52 | 31.96 |
Key Performance Indicator
As of December 31, 2023, the market capitalization of SRM Contractors stands at Rs 481.83 Cr. The company’s key performance indicators are as follows:
| KPI | Value |
|---|---|
| Return on Capital Employed (ROCE) | 29.43% |
| Debt/Equity Ratio | 0.5 |
| Return on Net Worth (RoNW) | 25.02% |
| Price to Book Value (P/BV) | 4.17 |
| Profit After Tax (PAT) Margin | 8.98% |
Insights:
SRM Contractors demonstrates robust financial health with impressive KPIs, including a high ROCE of 29.43%, a healthy Debt/Equity ratio of 0.5, and a strong Return on Net Worth (RoNW) of 25.02%. Additionally, the Price to Book Value (P/BV) ratio of 4.17 and a PAT Margin of 8.98% reflect the company’s sound operational efficiency and profitability.
Objects of the Issue (SRM Contractors IPO Objectives)
The company intends to allocate the Net Proceeds from the Issue towards the following objectives:
- Funding Capital Expenditure: Procuring equipment and machinery essential for operational enhancement.
- Repayment of Secured Borrowings: Full or partial repayment/prepayment of outstanding secured borrowings to strengthen the company’s financial position.
- Working Capital Requirements: Allocating funds to meet the working capital needs of the company, ensuring smooth business operations.
- Investment in Joint Venture Projects: Investing in project-specific joint ventures to capitalize on growth opportunities and expand the company’s project portfolio.
- General Corporate Purposes: Utilizing funds for general corporate activities aimed at supporting the overall functioning and development of the company.
Grey Market Premium as on 26.03.2024
| Market Status | Value |
|---|---|
| Grey Market Premium | ₹68 |
| IPO Price Band | ₹210 |
| Estimated Listing Price | ₹278 |
| Percentage Gain (Expected) | 31.43% |
Insights:
Shares of SRM Contractors are currently trading at a premium of ₹68 in the grey market. With an IPO price band of ₹210, the estimated listing price is anticipated to be ₹278, representing a potential percentage gain of 31.43% for investors.
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