SRM Contractors Limited IPO : Should You bid ? | Key Dates | BID Size & Price | Listing Date | Share Market | Finance | India | The Amit Gahlyan

The Initial Public Offering (IPO) of SRM Contractors Limited has garnered significant attention from investors, with the retail and non-institutional investor (NII) portions fully subscribed within hours of the issue opening. The IPO, which opened on March 26, 2024, has a price band set at ₹200-210 per share and offers bids in multiples of 70 shares.

SRM Contractors Limited, a company with a strong presence in the infrastructure sector, aims to raise funds through this IPO for various objectives, including working capital requirements, loan repayment, and capital expenditures. The company's order book is expected to see growth in the fiscal years 2024 and 2025, driven by government infrastructure initiatives, particularly in the Jammu & Kashmir region. This growth is anticipated as the company increases its fleet of machinery and equipment, positioning itself to take on larger projects and expand its market reach.

The IPO has been structured as a book-built issue, with a total issue size of ₹130.20 crores, translating to 6,200,000 shares being offered. The issue is entirely a fresh issue of shares, with no offer for sale component. The allotment of shares is expected to be finalized by April 1, 2024, with the listing date tentatively set for April 3, 2024, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

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Investors have shown a keen interest in the IPO, as evidenced by the quick subscription rates and the successful raising of ₹39.06 crores from anchor investors prior to the public offering. The anchor investors' portion was subscribed on March 22, 2024, indicating strong pre-market confidence in the company's prospects.

For potential investors, the IPO presents an opportunity to invest in a company that is poised to benefit from the ongoing and future infrastructure projects in India. Analysts have given a 'Subscribe' rating to the IPO, suggesting that the company's financials and growth prospects make it a worthy consideration for investment portfolios.

As the IPO window closes on March 28, 2024, interested investors should ensure they have completed their due diligence and are ready to make an informed decision on participating in SRM Contractors Limited's IPO. With the buzz around the IPO and the positive outlook from analysts, it remains to be seen how the company will perform once its shares are publicly traded on the stock exchanges. 

For more detailed information on the IPO, including the company's financials, risk factors, and management's discussion and analysis, potential investors can refer to the Red Herring Prospectus (RHP) and other official documents provided by the company.