SRM Contractors gains on debut

Shares of SRM Contractors were currently trading at Rs 236.20 at 10:29 IST on the BSE, representing a premium of 12.48% as compared with the issue price of Rs 210.

The scrip was listed at Rs 225, exhibiting a premium of 7.14% to the issue price.

So far, the stock has hit a high of 236.20 and a low of 213.75. On the BSE, over 3.01 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of SRM Contractors was subscribed 86.57 times. The issue opened for bidding on 26 March 2024 and it closed on 28 March 2024. The price band of the IPO was fixed at Rs 200 to 210 per share.

The issue comprised a fresh issue of 62,00,000 equity shares. The company proposed to utilize the net proceeds from the fresh issue to fund capital expenditure requirements for the purchase of equipment and machinery; full and part-payment of certain outstanding secured borrowings; incremental working capital requirements, investment in project specific JV projects and the balance towards general corporate purposes.

SRM Contractors is an engineering construction and development company undertaking construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in hilly, challenging and difficult terrains and geography such as the Union Territories of Jammu & Kashmir and Ladakh.

The company executes construction both as an EPC contractor and on an item rate basis for infrastructure projects. It undertakes contracts independently or whenever required, through project-specific joint ventures (JVs) with other infrastructure and construction entities when a project requires meeting specific eligibility requirements of certain large projects, including requirements relating to specific experiences.

The firm reported a net profit of Rs 21.07 crore and sales of Rs 234.55 crore for the nine months ended on 31 December 2023.

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