SRM Contractors IPO marching towards 50x subscription on final day. Check GMP and other details

The initial public offering (IPO) of SRM Contractors is marching towards 50X subscription on the final day of bidding. The overall subscription stood at 47x so far.
The category reserved for non-institutional investors was subscribed the most at 133 times, followed by retail investors at nearly 32 times and institutional buyers at 9.7 times.

About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.
The issue, which closes today, is a fresh equity sale of 62 lakh shares, where investors can bid for 70 shares in one lot.

SRM Contractors IPO price band

SRM Contractors has fixed a price band of Rs 200-210 per share for its public offer.

SRM Contractors IPO GMP

In line with the investors' demand, the GMP has seen a big spike since the issue launch. The stock is currently trading at Rs 110 in the unlisted market as against Rs 40 a few days ago.

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 Kashmir, and Ladakh.

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.

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.

SRM Contractors IPO financials

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.