SRM Contractors sets IPO price band at Rs 200-210 per share; issue to open on March 26
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Investors can bid for 70 shares in one lot. The company plans to raise around Rs 130 crore via the initial stake sale.
The issue is being made through the book-building process, wherein 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.
Net proceeds from the public offer will be used for funding capital expenditure for the purchase of equipment, full or part repayment of debt, investment in joint ventures, working capital requirements and general corporate purposes.
SRM Contractors is an engineering construction and development company engaged primarily in the construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in the union territories of Jammu and Kashmir and Ladakh.
Also Read: Krystal Integrated Services shares erase all listing gains. Should you hold or sell?The company undertakes construction works both as an EPC contractor and on an item-rate basis for infrastructure projects. It also does sub-contracting assignments for infrastructure construction projects.SRM has a track record of successful execution of road, tunnel and slope stabilization projects in the difficult terrain of union territories of Jammu & Kashmir and Ladakh and it, thus, believes that it has developed the expertise and know-how to undertake infrastructure construction projects in difficult terrains.
Our company has emerged as a key player in the infrastructure construction industry in the Union Territories of Jammu & Kashmir and Ladakh and has developed technical capabilities to execute projects in hilly/ challenging terrain in the region
In recent years, J&K has received a boost in road infrastructure development, following the government’s enhanced focus on improving road infrastructure in the region.
In FY23, the company’s revenue from operations increased 13% to Rs 300 crore, while profit after tax rose 7% to Rs 18.74 crore. For the nine months ended December 2023, revenues stood at Rs 242 crore and PAT came in at Rs 20.17 crore.
Interactive Financial Services is the sole book-running lead manager for the IPO and Bigshare Services is the registrar.
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