SRM Contractors IPO listing tomorrow: Here's what GMP, subscription status hint ahead of listing

The SRM Contractors IPO listing date has been set for tomorrow (Wednesday, April 3). The SRM Contractors IPO allotment was finalised yesterday (Monday, April 1).

Today, Tuesday, April 2, will see the crediting of shares to demat accounts for individuals who have been allocated shares. Furthermore, today will see the completion of the share refunding procedure for those who have not yet received their shares.

The response to SRM Contractors IPO subscription was overwhelmingly positive throughout the span of the three days. The SRM Contractors IPO subscription status was 86.57 times, as per BSE data. The non-institutional investors (NIIs) portion was booked 214.94 times, while the retail portion was subscribed 46.97 times. The qualified institutional buyers (QIBs) portion was booked 59.59 times. The issue fetched 17.42 times on day 2, and 3.56 times subscriptions on day 1.

Also Read: SRM Contractors IPO allotment out; Here's GMP, how to check allotment status online

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SRM Contractors IPO price band was fixed at ₹200– ₹210 per share, with a face value of ₹10. Bids for multiples of 70 shares were considered, with a minimum bid of 70 shares. A minimum of 15% of the shares were allocated for QIB, up to 50% for NII, and 35% were set aside for retail investors.

Market experts advise allotted investors to book profits as, post-listing, the valuations will be stretched to match the listed stocks. Analysts expect listing anywhere above 50% of this issue price. It is better to book profits and stay safe in today's market scenario, says experts. 

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

Let's check what does SRM Contractors IPO GMP today signal ahead of listing.

SRM Contractors IPO GMP is +95, similar to yesterday's session. This indicates SRM Contractors share price were trading at a premium of ₹95 in the grey market, according to investorgain.com.

The SRM Contractors IPO is anticipated to list at ₹305 per share, which is 45.24% more than the IPO price of ₹210, taking into account the upper end of the IPO price band and the present premium on the grey market.

Grey market activity for the past 15 sessions indicates that the IPO GMP is heading upward and that a robust listing is anticipated. Analysts at investorgain.com estimate that the lowest GMP is ₹25 and the maximum GMP is ₹125.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: SRM Contractors IPO: GMP, subscription status to allotment date. How to check allotment status online

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.

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

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

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.