SRM Contractors IPO last bidding day today: Should you subscribe or not? Check GMP, subscription status, other details

SRM Contractors IPO: On both days of the IPO, there was significant interest from retail and non-institutional investors (NIIs) for SRM Contractors. The subscription period for this issue, which began on Tuesday, March 26, will end today, Thursday, March 28.

SRM Contractors IPO subscription status was 17.42 times, as per BSE data, on the second day, where the NII portion was booked 45.51 times, the retail portion was subscribed 13.95 times, and qualified institutional buyers (QIBs) fetched 2.41 times. On day 1, the overall issue was booked 3.56 times.

Also Read: SRM Contractors IPO Day 2: Check GMP, subscription status, review. Should you subscribe to the issue?

SRM Contractors IPO price band has been set in the range ofRs 200 to ₹210 per share, with a ₹10 face value. There is a minimum bid of 70 shares and bids can be made for multiples of 70 shares. A minimum of 15% of the shares have been set up for NII, up to 50% of the shares for QIB, and at least 35% of the shares are reserved for retail investors.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

On Friday, March 22, the SRM Contractors IPO raised ₹39 crore from anchor investors.

The allotment date for SRM Contractors IPO shares is tentatively scheduled for Monday, April 1. On Tuesday, April 2, which is also the refund day, the shares will be creditedto the allottees' demat accounts. SRM Contractors share price is likely to be listed on BSE and NSE on Wednesday, April 3.

SRM Contractors works on a variety of civil construction projects in the Union Territories of Jammu & Kashmir and Ladakh. Its projects include building highways (including bridges), tunnels, slope stabilization projects, and other smaller ones.

The company has developed into a significant player in the infrastructure development industry in the Union Territories of Jammu & Kashmir and Ladakh thanks to its technical know-how in completing projects in the region's difficult terrain.

Also Read: SRM Contractors IPO: From financials to key risks, here are 10 key things to know from RHP before subscribing

SRM Contractors IPO Subscription Status

Retail investors responded favourably to the offer on the last day of bidding, and the NII portion continued to see enormous demand. 

The overall SRM Contractors IPO subscription status was 86.57 times, as per BSE data. The retail portion was subscribed 46.97 times, and NII portion was booked 214.94 times. The QIBs portion was booked 59.59 times.

SRM IPO has received bids for 37,57,09,530 shares against 43,40,100 shares on offer, according to data from the BSE.

The retail investors' segment received bids for 10,19,17,130 shares against 21,70,000 shares on offer for this segment.

The NIIs portion got bids for 19,98,89,690 shares against 9,30,000 on offer for this segment.

The QIBs segment got bids for 7,39,02,710 shares against 12,40,100 on offer for this segment.

SRM Contractors IPO details

The SRM IPO comprises a fresh issueof up to 62,00,000 equity shares, with an aggregate value of ₹130.20 crore. There is no offer-for-sale component.

The company intends to use the net proceeds of the offering for the following reasons: meeting working capital needs; fully or partially repaying existing secured loans; taking part in project-specific joint ventures; and general corporate purposes. Additionally, funding will be available to cover the capital expenses related to buying machinery and equipment.

Bigshare Services Pvt Ltd is the registrar and Interactive Financial Services Ltd is the book running lead manager for the SRM Contractors IPO.

SRM Contractors IPO GMP today

SRM Contractors IPO GMP is +115. This indicates SRM Contractors share price were trading at a premium of ₹115 in the grey market, according to investorgain.com.

The expected listing price of SRM Contractors shares was indicated at ₹325 apiece, which is 54.76% more than the IPO price of ₹210, taking into account the upper end of the IPO pricing band and the present premium on the grey market.

The IPO GMP is pointing higher and anticipates a strong listing based on the activity of the past ten sessions in the gray market. Analysts at investorgain.com estimate that the lowest GMP is ₹25 and the maximum GMP is ₹115.

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

SRM Contractors IPO Review 

Hem Securities 

As to the brokerage, the business is offering the shares at a price range of ₹200-210, with a profit-and-loss multiple of 17x based on the annualised 9-month FY24 PAT basis. In the challenging topography of Jammu and Kashmir's union territory, the company has a track record of effectively completing road, tunnel, and slope stabilization projects. The business model employed by the company involves the selection and clustering of its projects within the union regions of Jammu & Kashmir and Ladakh.

“Company’s continuous focus on equipment ownership along with strong financial performance in the last three financial years. Company has in-house integrated mode along with experienced Promoters with strong management team. Looking after all above we recommend “Subscribe” on issue,” the brokerage said.

GEPL Capital 

SRM Contractors is a top construction company that specializes in road, bridge, tunnel, and slope stabilization projects in Jammu & Kashmir and Ladakh, according to the brokerage. The firm has demonstrated remarkable financial performance from FY21 to FY23, with 22% CAGR in revenue, 31% CAGR in PAT, and consistent double-digit margins. As of December 2023, the company has a sizeable order book of ₹713 crore, which guarantees medium- to long-term growth.

“Based on annualised FY24 earnings to post-IPO paid-up equity capital of the company, The issue is priced at a P/E of 17.15x times earnings. Thus the issue appears fairly priced compared to peers. We recommend “Subscribe” rating to the issue, ” the brokerage said. 

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

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.