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SRM Contractors IPO shares to make D-st debut today: What should you expect?

SRM Contractors IPO shares to make D-st debut today: What should you expect?

Jammu-based SRM Contractors sold its IPO in the price band of Rs 200-210 per share with a lot size of 70 shares. It was opened for bidding between March 26 and March 28.

Pawan Kumar Nahar
Pawan Kumar Nahar
  • Updated Apr 3, 2024 8:41 AM IST
SRM Contractors IPO shares to make D-st debut today: What should you expect? SRM Contractors is a construction and development company primarily engaged in the construction in Jammu & Kashmir (J&K) and Ladakh.

SRM Contractors is likely to see a strong stock market debut on Wednesday, even as the grey market premium (GMP) for the Jammu-based construction player more than halved ahead of its listing. Last heard,  SRM Contractors was commanding a GMP that suggests 33-35 per cent listing pop.

Ahead of its listing, SRM Contactors the company was commanding a premium of Rs 70 per share in the unofficial market, suggesting a listing gain of 33 per cent for investors. The premium stood at Rs 95 apiece, a day ago and at Rs 125 apiece at the time of IPO conclusion.

Taking into consideration the market sentiment, the SRM Contractors IPO may list in the Rs 260-300 per share range, said Vishnu Kant Upadhyay, Assistant Vice President at Master Capital Service. "The listing view for the IPO is that the investor can hold the stock for long term post listing," he said.

“SRM Contractors 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,” Upadhyay added.

Jammu-based SRM Contractors sold its IPO in the price band of Rs 200-210 per share with a lot size of 70 shares, which was open for bidding between March 26 and March 28. The company aimed to raise around Rs 130.20 crore from its primary offering, which was entirely a fresh share sale of 62 lakh equity shares.

The issue was overall subscribed a solid 86.57 times, thanks to strong bidding from non-institutional bidders (NIIs), whose allocation was booked a whopping 214.94 times. The quota for qualified institutional investors (QIBs) was subscribed 46.97 times, and the portion of retail investors was subscribed 59.59 times during the bidding process.

SRM Contractors is a construction and development company primarily engaged in the construction of roads (including bridges), tunnels, slope stabilisation works, and other construction activities in Jammu & Kashmir (J&K) and Ladakh. It operates as an EPC contractor and on a unit-price basis for infrastructure projects and subcontracts infrastructure construction projects.

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Interactive Financial Services is the sole book running lead manager of the SRM Contractors IPO, while Bigshare Services is the  registrar for the issue.

 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Apr 3, 2024 8:41 AM IST
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