20 March 2024– SRM Contractors, a construction and development company, is set to launch its Rs 130.20 crore initial public offering (IPO) on March 26, with a price band of Rs 200-210 per share. Here’s what investors need to know about the IPO.
SRM Contractors, a construction and development company based in Jammu and Kashmir, is gearing up to launch its initial public offering (IPO) worth Rs 130.20 crore on March 26. The IPO comprises a fresh issue of 62 lakh equity shares with no offer-for-sale component. Investors can participate in the IPO by bidding for a minimum of 70 equity shares and in multiples of 70 thereafter.
The price band for the IPO has been fixed at Rs 200-210 per share. Half of the IPO size is reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors. SRM Contractors plans to utilize the proceeds from the IPO for various purposes, including equipment purchase, working capital, debt repayment, and investment in project-specific joint ventures. In FY23, the company recorded a net profit of Rs 18.75 crore on revenue of Rs 300.3 crore. As of the nine months period in the current financial year, the net profit stood at Rs 21.07 crore on revenue of Rs 234.55 crore.
Investors keen on participating in SRM Contractors‘ IPO can bid within the specified price band and minimum bid quantity.
Conclusion
With its IPO set to open on March 26, SRM Contractors aims to raise Rs 130.20 crore to fuel its growth initiatives and strengthen its financial position. The company’s robust financial performance and strategic utilization of proceeds are expected to garner investor interest in the offering.
