SRM Contractors list at Rs 225 on the BSE, a premium of 7% to the issue price. The company kept the price band between Rs 200 to Rs 210 per equity share. It was listed at Rs 215.25 on the NSE, a premium of 2.5%.
In the grey market, SRM Contractors’ shares were seeing a premium of 33% to the issue price of Rs 210 per share. The grey market is an unofficial market where shares are traded in an illegal way before listing. Market participants track the grey market to take cues on stocks.
The company opened its retail bidding on March 26 and closed that on March 28 to raise Rs 130.20 crore from the investors. It offered 6.2 million shares fresh shares at a face value of Rs 10 per piece. The company kept the minimum lot of 70 shares aggregating to Rs 14,700.
Apollo Hospitals posts Q1 profit at Rs 305.20 crore, revenue rises by 15.1% YoY; How did biz verticals perform? Find out here Unicommerce eSolutions makes stellar debut, lists at 118% premium OLA Electric IPO closes today; Check subscription, GMP, review, and other details before you subscribe Akums Drugs and Pharmaceuticals makes positive debut, lists at 7% premium; Read to know more
SRM Contractors is in the business of construction and development of roads and tunnels. It is based out of the Union Territories of Jammu & Kashmir and Ladakh. Sometimes, the company also acts as a sub-contractor for infrastructure construction projects.
“SRM Contractors’ flat listing, while not what pre-listing indicators suggested, doesn’t necessarily negate its future potential. The company’s strong regional presence, in-house capabilities, and healthy order book remain positive points. However, a cautious approach is advisable,” said Shivani Nyati, Head of Wealth at Swastika Investmart.
The firm is expanding its fleet of machinery and equipment, which will boost its operational efficiency in the upcoming quarters, and its order book is anticipated to grow in FY25 as a result of government infrastructure efforts in J&K, where the company operates. On January 31, 2024, SRM Contractors’ order book reached Rs 1,199.32 crore, a 177% increase from FY21 to FY23. The business has a history of effectively finishing significant government projects. Rapid urbanization, increased freight traffic, and the need for better infrastructure have all contributed to the nation’s push for tunnel development and building in recent years. “Taking into consideration the market sentiments the SRM Contractors IPO may list between Rs 260 – Rs 300 per share. The listing view for the IPO is that the investor can hold the stock for long-term post listing,” said Vishnu Kant Upadhyay, Assistant Vice President at Master Capital Service.
