19-Mar-2024
2 mins read
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SRM Contractors IPO is open for subscription starting from Tuesday, March 26, 2024, and will close on Thursday, March 28, 2024. The price is decided at Rs 200 to Rs 210 per share. The minimum lot size of this application for the retail category is 70 shares. The minimum lot size for small non-institutional investors is 14 lots consisting of 980 shares. Meanwhile, the minimum lot for big non-institutional investors is 69 lots with 4830 shares. The minimum investment required for retail category investors is Rs 14,700 ( 210 x 70 shares). However, for small non-institutional investors, the minimum investment amount required is Rs 2,05,800 (210 x 980 shares); for big non-institutional investors, it is Rs 10,14,300 (210 x 4830 shares).
SRM Contractors IPO is a book-built issue of Rs 130.20 crores. The issue is completely a fresh issue of Rs 0.62 crore shares. The allotment for this IPO is expected to be finalised on Monday, April 1, 2024. SRM Contractors Limited IPO will be listed on both BSE and NSE, and the listing date is fixed on Wednesday, April 3, 2024. The book-running lead managers of SRM Contractors Limited are Interactive Financial Services Limited. The registrar for this new IPO is Bigshare Services Private Limited.
About SRM Contractors Limited Company Profile
SRM Contractors Limited was established in 2008, engaged in the business of construction and development. The company's business is focused on the construction of roads, bridges, tunnels, slope stabilisation works, and other construction activities in the UT of Jammu, Kashmir, and Ladakh. SRM Contractors operates as an EPC contractor and on a unit basis for the infrastructure projects. The company’s business is divided into three major business verticals. Road projects, Tunnel projects and Slope Stabilization works.
In Road projects, the company is involved in planning and construction of realignment, widening, upgradation, restoration, improvement of roads and bridges. In Tunnel projects, the company is involved in designing and construction of new tunnels, cut and cover tunnels for avalanche and landslide protection. Slope Stabilization works involved in planning and construction of reinforced embankment structures as a part of Slope stabilisation work. As of March 2024, the company has completed 37 structure construction projects. It includes 31 road construction projects, 3 tunnel projects, 1 slope stabilisation projects and two miscellaneous projects.
Objectives of SRM Contractors IPO Issue
The amount received from the IPO is expected to get utilised for funding the capital expenditure requirements for purchasing of new machinery and equipment. Other than this, the net proceeds from this issue will be used for the repayment and prepayment of certain loans taken in past years. Also, to fund the working capital requirements of the company. Moreover, the proceeds will be used to invest in project-specific joint ventures projects.
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Financials of SRM Contractors Limited (Amt in Rs Crore)
SRM Contractors reported a revenue of Rs 300.65 crore and net profit of Rs 18.75 crore for the quarter ending on 31 March 2023. The company’s revenue increased by 13.24% and PAT increased by 6.71% between the FY ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 137.36 | 120.22 | 112.47 |
| Revenue | 300.65 | 265.51 | 161.95 |
| Profit After Tax | 18.75 | 17.57 | 8.27 |
| Net Worth | 63.16 | 44.41 | 26.85 |
| Reserves and Surplus | 46.41 | 42.89 | 25.32 |
| Total Borrowing | 47.16 | 31.52 | 31.96 |
Other Important Details of SRM Contractors Limited IPO
| IPO Date | March 26, 2024 to March 28, 2024 |
| Listing Date | 3-Apr-24 |
| Face Value | Rs 10 per share |
| Price Band | Rs 200 to Rs 210 per share |
| Lot Size | 70 Shares |
| Total Issue Size | 6,200,000 shares amounting to Rs 130.20 crores |
| Fresh Issue | 6,200,000 shares amounting to Rs 130.20 crores |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 16,744,200 |
| Shareholding post issue | 22,944,200 |
Time-Table of SRM Contractors Limited IPO
| 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 | 5 PM on March 28, 2024 |
Lot Size of SRM Contractors Limited IPO
| Application | Lots | Shares | Amount |
| Retail - minimum | 1 | 70 | Rs 14,700 |
| Retail - maximum | 13 | 910 | Rs 191,100 |
| S-HNI - minimum | 14 | 980 | Rs 205,800 |
| S-HNI - maximum | 68 | 4,760 | Rs 999,600 |
| B-HNI - minimum | 69 | 4,830 | Rs 1,014,300 |
IPO Reservation of SRM Contractors Limited
| Investor Category | Shares Offered |
| QIB Shares | Not more than 50 percent of the Issue |
| Retail Shares | Not less than 35 percent of the Issue |
| NII (HNI) Shares | Not less than 15 percent of the Issue |
Promoters of SRM Contractors Limited and Their Holdings
The promoters of SRM Contractors company are Sanjay Mehta, Ashley Mehta, and Puneet Pal Singh.
| Shareholding Pre Issue | 99.92 percent |
| Shareholding Post Issue | - |
Key Performance Indicator of SRM Contractors Limited IPO
| KPI | Values |
| ROCE | 35.04% |
| Debt/Equity | 0.75 |
| RoNW | 29.68% |
| P/BV | 5.57 |
| PAT Margin | 6.24% |
EPS and P/E Ratio Post IPO
| Pre IPO | Post IPO | |
| EPS (Rs) | 11.2 | 8.17 |
| P/E (x) | 18.76 | 25.7 |
Lead Manager(s) of SRM Contractors Limited IPO
The lead manager for SRM Contractors Limited IPO is Interactive Financial Services Limited.
How do you apply for the SRM Contractors Limited IPO?
Wait for the public issue to open for subscription, then visit Bigul website to apply for the SRM Contractors Limited IPO with Bigul.
How do you check the allotment status of SRM Contractors Limited IPO?
The registrar for SRM Contractors Limited IPO is Bigshare Services Private Limited. To check your allotment status, please click here.
FAQs
- What is SRM Contractors Limited IPO 2024?
SRM Contractors IPO is a book-built issue of Rs 130.20 crores. The issue is completely a fresh issue of Rs 0.62 crore shares. The allotment for this IPO is expected to be finalised on Monday, April 1, 2024.
- Who are the lead managers for the SRM Contractors Limited IPO?
Interactive Financial Services Limited are appointed as the lead managers for the IPO.
- What is the role of Bigshare Services Private in this IPO?
Bigshare Services Private Limited is the registrar for SRM Contractors Limited, handling the IPO's administrative aspects.
- How can I apply for the SRM Contractors Limited IPO?
The public subscription of this IPO will open on March 26, 2024. Visit the Bigul website for the application process.
- How will the net proceeds from the IPO be utilised?
The amount received from the IPO is expected to get utilised for funding the capital expenditure requirements for purchasing of new machinery and equipment. Other than this, the net proceeds from this issue will be used for the repayment and prepayment of certain loans taken in past years. Also, to fund the working capital requirements of the company.
- How can I check the allotment status of the IPO?
Investors can check the allotment status of the SRM Contractors Limited IPO 2024 by visiting here.
- What is the financial performance of SRM Contractors Limited?
SRM Contractors reported a revenue of Rs 300.65 crore and net profit of Rs 18.75 crore for the quarter ending on 31 March 2023. The company’s revenue increased by 13.24% and PAT increased by 6.71% between the FY ending with March 31, 2023 and March 31, 2022.
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