SRM Contractors Limited is launching its IPO. The IPO opens for subscription on 26th March and will close on 28th March 2024.
What does SRM Contractors Limited do?
Incorporated in 2008, SRM Contractors Limited is an engineering construction and development company engaged primarily in the construction of roads (including bridges), tunnels, slope stabilization works, and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh. The company undertakes construction works as an EPC contractor and on an item-rate basis for infrastructure projects. The company also undertakes sub-contracting assignments for infrastructure construction projects. It is an ISO 9001:2015 certified company registered as a class A contractor with the Public Work (R&B) Department, Jammu & Kashmir.
Since incorporation, the company has completed 38 infrastructure construction projects with an aggregate contract value of ₹1,41,165.62 lakhs, which includes 32 road projects, 3 tunnel projects, 1 slope stabilization works, and 2 other miscellaneous civil construction activities. Out of the 38 projects executed by the Company, 30 infrastructure construction projects, including sub-contracting assignments, have been executed independently and 8 projects have been executed through project-specific joint ventures.
What is the issue size of the SRM Contractors Limited IPO?
The entire issue size of the IPO comprises a fresh issue of 6,200,000 shares aggregating up to ₹ 130.20 Cr.
Financials of SRM Contractors Limited IPO (₹ crores)
| Financial Year | Total Assets | Total Revenue | Profit After Tax | EBITDA |
|---|---|---|---|---|
| March 31, 2021 | 112.47 | 161.95 | 8.27 | 18.33 |
| March 31, 2022 | 120.22 | 265.51 | 17.57 | 32.01 |
| March 31, 2023 | 137.36 | 300.65 | 18.75 | 38.65 |
Schedule/Timeline of SRM Contractors Limited IPO
| Issue Period | 26th March to 28th March 2024 |
|---|---|
| Price band | ₹ 200 to 210 |
| Minimum Bid quantity | 70 & Multiples thereof |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | April 01, 2024 |
| Initiation of Refunds | April 02, 2024 |
| Credit of Shares | April 02, 2024 |
| Date of Listing | April 03, 2024 |
| Mandate end date | April 12, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | May 01, 2024 |
Anchor Investors Lock-In End Date (Remaining investment) July 01, 2024
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
Risk factors to consider:
Geographical concentration: As the company’s business is concentrated in the Union Territory of Jammu & Kashmir and Ladakh, It can be exposed to risks emanating from economic, regulatory, and other changes in the Union Territory of Jammu & Kashmir and Ladakh.
Dependence on top 10 clients: The company derives more than 95% of its revenue from its top 10 clients. The loss of any significant clients may have an adverse effect on the business, financial condition, results of operations, and future prospects.
How to apply to the SRM Contractors Limited IPO?
You can apply for the SRM Contractors Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for the SRM Contractors Limited IPO?
You can check the allotment status for the SRM Contractors Limited IPO on the website of the Registrar and Transfer agent.