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Business News/ Markets / Ipo/  SRM Contractors IPO Day 2: Issue booked 9.7 times on strong NII interest; check GMP, subscription status, more
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SRM Contractors IPO Day 2: Issue booked 9.7 times on strong NII interest; check GMP, subscription status, more

SRM Contractors IPO is the sole mainboard IPO open for subscription this truncated week. The issue will close on Thursday, March 28.

SRM Contractors IPO price band has been set in the range of ₹200 to ₹210 per equity share of the face value of ₹10. (SRM Contractors IPO)Premium
SRM Contractors IPO price band has been set in the range of 200 to 210 per equity share of the face value of 10. (SRM Contractors IPO)

SRM Contractors IPO subscription status: After a positive response on the first day of issue, bidders remain invested in SRM Contractors IPO on the second day. The issue received favourable responses especially from non-institutional investors (NIIs), with their portions booked the highest among all groups of investors on Wednesday, March 27. 

On Day 2, the overall SRM Contractors IPO subscription status was 9.71 times, as per NSE data. SRM Contractors IPO is the sole mainboard IPO open for subscription this truncated week. The issue will close on Thursday, March 28. The company has reserved 15 per cent of the shares for NIIs, maximum of 50 per cent for qualified institutional buyers (QIBs), and not less than 35 per cent for retail investors.

SRM Contractors IPO details.
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SRM Contractors IPO details. (SRM Contractors IPO)

SRM Contractors IPO subscription status

SRM IPO has received bids for 4,21,42,310 shares against 43,40,100 shares on offer, according to data from the NSE. The retail portion was subscribed 7.97 times, and NII portion was booked 23.54 times and the QIB portion was booked 2.38 times.

The retail investors' segment received bids for 1,72,93,290 shares against 21,70,000 shares on offer for this segment. The NIIs portion got bids for 2,18,92,920 shares against 9,30,000 on offer for this segment. The QIBs segment got bids for 29,56,100 shares against 12,40,100 on offer for this segment. On the first day of bidding, the issue was subscribed 3.56 times, according to stock exchange data.

SRM Contractors IPO details

SRM IPO, consists of of fresh issue of up to 62,00,000 equity shares aggregating up to 130.20 crore. There is no offer-for-sale component. SRM Contractors IPO price band has been fixed in the range of 200 to 210 apiece of the face value of 10. 

Bids can be made for multiples of 70 shares, with a minimum bid of 70. The lead manager of the issue is Interactive Financial Services Ltd, and the registrar is Bigshare Services Pvt Ltd.

Also Read: SRM Contractors IPO: GMP, issue details, 10 key things to know before investing to 130 crore issue

With the net proceeds from the offering, the company intends to fund the following goals: meeting working capital needs; fully or partially repaying existing secured loans; taking part in joint ventures customised for specific projects; and general corporate purposes. Additionally, funding will be available for the capital expenses required to buy machinery and equipment.

SRM Contractors Company Details

SRM Contractors, an engineering firm operating in the Union Territories of Jammu & Kashmir and Ladakh, focuses on a variety of civil construction projects. Its undertakings include building roads (including bridges), tunnels, slope stabilisation projects, and other small-scale projects.

According to the Red Herring Prospectus (RHP), contracts in the company's order book, including subcontracting activities, have values of 1,199.31 crore as of January 31, 2024, 834.69 crore as of March 31, 2023, 257.88 crore as of March 31, 2022, and 432.57 crore as of March 31, 2021. The company's promoters are Ashley Mehta, Puneet Pal Singh, and Sanjay Mehta.

Also Read: SRM Contractors IPO: 10 key risks to consider before subscribing to the issue

Peers that are listed with the firm include Man Infraconstruction Ltd (P/E of 46.87), ITD Cementation India Ltd (P/E of 46.56), Likhitha Infrastructure Ltd (P/E of 17.42), and Udayshivakumar Infra Ltd (P/E of 21.17).

SRM Contractors IPO GMP today

SRM IPO GMP today is is +110. This indicates SRM Contractors share price were trading at a premium of 110 in the grey market, according to investorgain.com.

Taking into consideration the upper end of the IPO pricing band and the current premium on the grey market, the estimated listing price of SRM Contractors shares was suggested at 320 apiece, which is 52.38 per cent more than the IPO price of 210. 'Grey market premium' indicates investors' readiness to pay more than the issue price.

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 27 Mar 2024, 08:40 PM IST
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