₹ 14700 / 70 shares
IPO Details
RHP/DRHPIssue Date
26 Mar - 28 Mar'24
Investment/lot
₹ 14700
Price Range
200 - 210
Lot Size
70
IPO Size
₹ 130.20 Cr
IPO Listing Details
Listing On
3 Apr'24
Issue Price
210
Listed Price
₹ 215
Retail Gain/Listing Gain
â–²2.50%
IPO Timeline
SRM Contractors Company Background
SRM Contractors is an engineering construction and development company engaged primarily in the construction of roads, bridges, tunnels, slope stabilisation works and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh.
The company undertakes construction work both as an EPC contractor and on an item rate basis for infrastructure projects, alongside taking sub-contracting assignments for infrastructure construction projects.
With that, let's take a look at the competitive strength and risk factors for SRM Contractors Limited:
SRM Contractors Competitive Strengths
Proven track record of efficient execution of roads, tunnels and slope stabilisation work
The company boasts a strong history of successfully completing road, tunnel projects, and slope stabilisation work in the challenging landscapes of Jammu and Kashmir and Ladakh. As of January 31, 2024, they have accomplished 38 projects with a combined contract value of Rs. 1,41,165.62 Lakhs. This encompasses 32 road projects, 3 tunnel projects, 1 slope stabilisation work, and 2 other miscellaneous civil construction tasks.
Business model of selecting and clustering projects
The Company’s growth primarily stems from a business model that concentrates on selecting and grouping projects in the Union Territory of Jammu and Kashmir and Ladakh. This approach maximises efficiency and profitability by leveraging their expertise in navigating the challenging terrain. EPC projects are chosen strategically, considering factors like project clustering potential, and geographical clustering within the Union Territory enables them to optimise resources, reduce transportation costs, and achieve economies of scale, even in subcontracted projects.
Strong financial performance
The business has experienced notable growth over the past three financial years, significantly enhancing their financial standing. Revenue from operations stood at Rs. 30,029.08 Lakhs in FY23, Rs. 26,361.14 Lakhs in FY22, and Rs. 16,005.89 Lakhs in FY21, marking year-on-year growth rates of 13.91%, 63.60% in 2023 and 2022, respectively.
Risk Factors
-
The business is concentrated in the Union Territory of Jammu & Kashmir and Ladakh and is exposed to risks emanating from economic, regulatory and other changes.
-
The Company’s revenue is majorly concentrated from projects undertaken or awarded by government authorities in the Union Territory of Jammu & Kashmir and Ladakh.
-
A significant portion of revenue is derived from a limited number of clients.
Key Strategies
-
Bid for, win and operate hybrid annuity model-based projects.
-
Expansion of fleet of machinery and equipment.
-
Further enhance project execution capabilities.
SRM Contractors Key Financials
Here are the key financials for SRM Contractors Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•04m 01s
How to apply for an IPO using UPI
Kotak Securities
•01m 19s
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for SRM Contractors Ltd IPO?
Here are the steps to apply for SRM Contractors Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
SRM Contractors Ltd IPO FAQs
When is SRM Contractors Ltd IPO listing date?
SRM Contractors Ltd will list on 2024-04-03.
What is the issue size of SRM Contractors Ltd IPO?
130.20 is the issue size of SRM Contractors Ltd IPO.
What is the minimum lot size required for SRM Contractors Ltd IPO?
The minimum lot size is 70 shares and the investment required is ₹14700.
What is the price band of the SRM Contractors Ltd IPO?
The price band of SRM Contractors Ltd IPO is ₹200 to ₹210.
Where can I read more about SRM Contractors Ltd business?
You can read more about SRM Contractors Ltd and its IPO from the company’s red herring prospectus (RHP) here.
What is the SRM Contractors Limited IPO?
The SRM Contractors Limited IPO has an issue size of Rs. 130.20 crores. The IPO opens for subscription on 26th March 2024 and closes on 28th March 2024.
Who is the Registrar for SRM Contractors Limited IPO?
Bigshare Services Private Limited is the registrar for this IPO.
