SRM Contractors share price makes a lukewarm debut, stock opens with a mere 2.5% premium at ₹215.25 on NSE
- SRM Contractors share price opened at ₹215.25 per share, 2.5% higher than the issue price of ₹210. SRM Contractors IPO GMP at +70 in grey market. Predicted listing price at ₹280, 33.33% higher than IPO price. Market experts anticipated opening price of ₹270-290 per share.
SRM Contractors share price made a lukewarm debut on the bourses today. On NSE, SRM Contractors share price opened at ₹215.25 per share, 2.5% higher than the issue price of ₹210. On BSE, SRM Contractors share price today opened at ₹225 apiece, up 7.14% than the issue price. Following a dull debut, SRM Contractors share price rose nearly 5% in a choppy market.
Market experts anticipated SRM Contractors share price to open in the range of ₹270– ₹290 per share.
The SRM Contractors IPO subscription status was 86.57 times, on the third day of bidding, as per BSE data. Retail investors and non-institutional investors responded favourably to the offer on all three days of bidding.
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SRM IPO reserved 50% of the shares for qualified institutional buyers (QIBs), 15% of the shares was reserved for NIIs, and 35% was set aside for retail investors. SRM Contractors IPO price band was fixed in the range of ₹200 to ₹210 apiece, with a ₹10 face value. Investors could bid for a minimum of 70 shares and in multiples thereof.
The SRM Contractors IPO garnered ₹39 crore from anchor investors on Friday, March 22.
SRM Contractors operates in the Union Territories of Jammu & Kashmir and Ladakh, undertaking a range of civil construction projects. Its initiatives include construction of tunnels, slope stabilisation projects, roadways (including bridges), and other minor ones.
Due to its technical expertise in completing assignments in the challenging terrain of the Union Territories of Jammu & Kashmir and Ladakh, the firm has grown to become a major participant in the infrastructure development market.
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 net proceeds of the offering will be used by the firm for working capital needs, project-specific joint venture participation, full or partial repayment of existing secured loans, and general corporate purposes. Funding will also be available to pay for the capital costs associated with purchasing machinery and equipment.
For the SRM Contractors IPO, Interactive Financial Services Ltd is the book running lead manager and Bigshare Services Pvt Ltd is the registrar.
SRM Contractors IPO GMP today
SRM Contractors IPO GMP is +70. This indicates SRM Contractors share price were trading at a premium of ₹70 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 predicted listing price of SRM Contractors shares was suggested at ₹280 apiece, which is 33.33% higher than the IPO price of ₹210.
Grey market activity over the previous 16 sessions indicates that the current GMP ( ₹70) is trending downward. According to investorgain experts, the lowest GMP is ₹25, and the maximum GMP is ₹125.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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.
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