SRM Contractors IPO Subscription Status Reaches 9.71 Times on Day 2

SRM Contractors IPO Subscription Status Reaches 9.71 Times on Day 2

VoM News Desk | March 27, 2024 | 11:14 PM IST | Breaking News | Follow on Google News

SRM Contractors IPO Subscription Status Reaches 9.71 Times on Day 2

SRM Contractors IPO Subscription Status Reaches 9.71 Times on Day 2

After a promising start on the first day, investor interest remains high in the SRM Contractors IPO as the subscription status reaches 9.71 times on Day 2. Notably, non-institutional investors (NIIs) have shown significant interest, with their portions being the most subscribed among all investor groups.

Detailed Subscription Breakdown

According to data from the NSE, SRM IPO received bids for 4,21,42,310 shares against 43,40,100 shares on offer. The retail portion was subscribed 7.97 times, while the NII portion was oversubscribed by 23.54 times. The qualified institutional buyers (QIBs) segment saw a subscription of 2.38 times.

• Retail Investors: Bid for 1,72,93,290 shares against 21,70,000 shares available.
• NIIs: Bid for 2,18,92,920 shares against 9,30,000 shares on offer.
• QIBs: Bid for 29,56,100 shares against 12,40,100 shares available.

IPO Details and Objectives

The SRM IPO consists of a fresh issue of up to 62,00,000 equity shares aggregating up to ₹130.20 crore, with no offer-for-sale component. Priced in the range of ₹200 to ₹210 per share, bids can be made for multiples of 70 shares, with a minimum bid of 70.

The net proceeds from the offering will be utilized for various purposes, including meeting working capital needs, repaying existing loans, participating in joint ventures, and funding capital expenses for machinery and equipment.

SRM Contractors, operating in the Union Territories of Jammu & Kashmir and Ladakh, focuses on civil construction projects such as roads, tunnels, and slope stabilization. As of January 31, 2024, the company’s order book stands at ₹1,199.31 crore.

IPO GMP and Expected Listing Price

The Grey Market Premium (GMP) for SRM IPO stands at +110, indicating a premium of ₹110 per share in the grey market. Considering the upper end of the pricing band and the GMP, the estimated listing price is suggested at ₹320 apiece, representing a 52.38 per cent premium over the IPO price.

Investor interest in the SRM Contractors IPO remains robust, reflecting confidence in the company’s growth prospects and the potential for healthy returns for investors.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.