Updated March 26th, 2024 at 13:00 IST

SRM Contractors IPO opens for subscription, check key details here

SRM Contractors is selling shares in price band of Rs 200-210 per share and a retail investor can bid for minimum one lot of 70 shares up to maximum of 13 lots.

Reported by: Business Desk
IPOs this week | Image:Freepik
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SRM Contractors IPO: SRM Contractors share sale via initial public offering (IPO) opened for subscription on Tuesday, March 26. The company is planning to raise Rs 130 crore from the IPO which is purely fresh issue of shares.

Here is all you need to know about SRM Contractors IPO

SRM Contractors is selling shares in price band of Rs 200-210 per share and a retail investor can bid for minimum one lot of 70 shares up to maximum of 13 lots. One lot of SRM Contractors shares is priced at Rs 14,700 at the upper end of the price band.

The company is selling 62 lakh shares and it has reserved 20 per cent shares for the qualified institutional buyers (QIBs), 15 per cent shares are set aside for non-institutional investors, 35 per cent shares are reserved for retail investors and 30 per cent shares are reserved for anchor investors.

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The company intends to deploy funds from the IPO to cover capital expenditure needs, including equipment/machinery purchases, as well as full or partial repayment of existing secured borrowings. Additionally, the proceeds will support the company's working capital requirements, investment in project-specific joint ventures, and general corporate purposes.

The IPO was fully booked within hours of opening as the issue was booked 1.67 times, data from BSE showed. Portion set aside for QIBs was booked 1.54 times, pie set aside for NII was booked 1.9 times and shares set aside for retail investors was subscribed 1.67 times.

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Established in 2008, SRM Contractors Limited specialises in construction and development, focusing primarily on projects involving roads (including bridges), tunnels, slope stabilisation works, and other civil construction activities in the Union Territories of Jammu and Kashmir and Ladakh.

Operating as both an EPC contractor and on a unit-price basis, the company undertakes infrastructure projects and subcontracts construction tasks.

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SRM Contractors Limited's key business verticals

Road Projects: Involves the planning and construction of roads, bridges, and highways, including realignment, widening, upgradation, restoration, strengthening, and maintenance within the Union Territories of Jammu and Kashmir and Ladakh.

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Tunnel Projects: Encompasses the design and construction of various types of tunnels, such as new tunnels, cut-and-cover tunnels for avalanche and landslide protection, caverns, and the expansion, upgradation, restoration, strengthening, and improvement of existing tunnels, including niche creation and stabilization, within the Union Territories of Jammu and Kashmir and Ladakh.

Slope Stabilisation Works: Focuses on planning and constructing reinforced embankment structures as part of slope stabilization initiatives.
 

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Published March 26th, 2024 at 13:00 IST