SRM Contractors IPO Opens Today: What You Need to Know
In a bustling week for the Indian markets, the initial public offering (IPO) of SRM Contractors Limited has sparked significant interest among investors. The IPO, opening today, aims to raise ₹130.20 crore through the sale of fresh shares. This development comes amid the company’s shares gaining traction in the grey market, showcasing a robust investor sentiment.
Details to Keep an Eye On
Before venturing into the financial endeavor of investing in SRM Contractors’ IPO, here are some key details potential investors should note:
- Price Band: The IPO is priced between ₹200 to ₹210 per equity share.
- Subscription Period: Open from 26th to 28th March 2024.
- Lot Size: Investors can bid for a minimum of 70 shares.
- IPO Size: Aiming to raise ₹130.20 crore.
- Grey Market Premium (GMP): Currently, shares command a premium of ₹67 in the grey market.
- Listing: Proposed on BSE and NSE with an expected listing date on 3rd April 2024.
Moreover, the company has already secured ₹39.06 crore from anchor investors ahead of the public issue, adding an extra layer of confidence among retail investors.
Subscription Status: A Promising Start
As of the first half of the initial day, the response has been overwhelmingly positive, with the IPO being subscribed 1.45 times. Breaking it down, the retail portion saw a subscription of 1.39 times, whereas the portions reserved for Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) subscribed 1.49 and 1.54 times respectively.
Why Invest in SRM Contractors?
Experts from the stock market have weighed in with their perspectives on the IPO. According to Parth Shah from StoxBox, SRM Contractors has emerged as a key player in infrastructure construction, particularly in challenging terrains such as Jammu & Kashmir and Ladakh. The company boasts a solid track record of completing large-scale government projects, positioning itself advantageously amidst the growing demand for infrastructure development in India.
Avinash Gorakshkar, Head of Research at Profitmart Securities, shares a mixed view. He appreciates the company’s strong growth outlook and healthy order book but cautions investors about the small size of the public issue and the track record of the merchant banker. Gorakshkar suggests that investors might consider applying for short-term listing gains.
Analyst Recommendations and What Lies Ahead
SMIFS Ltd analysts issue a ‘Subscribe’ rating, primarily due to the expected increase in the company’s order book in the upcoming financial years and its strategic initiatives to boost operational efficiency. The consensus among market watchers suggests a bright future for SRM Contractors, citing its crucial role in India’s infrastructure boom.
As SRM Contractors IPO sails through its subscription period, market participants are keeping a close eye on its performance, which seems to be heading towards a promising start. With an expected significant role in nation-building and infrastructure development, the company stands out as a potentially lucrative investment for those looking at medium to long-term horizons.
It’s pivotal for investors to conduct their due diligence and possibly consult with certified financial advisors before making any investment decisions.
Priyanka