SRM Contractors Limited is a construction and development company primarily engaged in the construction of roads (including bridges), tunnels, slope stabilization works, and other construction activities in the Union Territories of Jammu and Kashmir and Ladakh.
The company operates as an EPC contractor and on a unit-price basis for infrastructure projects and subcontracts infrastructure construction projects.
The company has these major business verticals:
- Road Projects: Planning and construction of realignment, widening, upgradation, restoration, and/or strengthening and improvement of roads, bridges, and highways and their maintenance in the Union Territories of Jammu and Kashmir and Ladakh.
- Tunner Projects: Design and construction of new tunnels, cut-and-cover tunnels for avalanche and landslide protection and caverns; also includes expansion, upgradation, restoration, and/or strengthening and improvement, including creation of niches/alterations in niches and stabilization of existing tunnels in the Union Territories of Jammu and Kashmir and Ladakh.
- Slope Stabilization Works: Planning and construction of reinforced embankment structures as part of slope stabilization work.
- Other Miscellaneous Civil Construction Activities: Construction of government housing and residential units, drainage work as well as irrigation and flood protection work.
As of March 2024, the company has completed 37 infrastructure construction projects with a total contract value of Rs. 770 Crore including 31 road construction projects, 3 tunnel projects, 1 slope stabilization project, and 2 miscellaneous construction works. Out of the 37 projects 29 infrastructure construction projects, including sub-contracts, were undertaken by the company independently and 8 projects were undertaken through project-specific joint ventures.
As of January 31, 2024, the company employed 275 full-time employees, consisting of specialists and workers.
SRM Contractors IPO – Details
| IPO Opening Date | 26 March 2024 |
| IPO Closing Date | 28 March 2024 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 62,00,000 Shares Worth ₹130.20 Crore Fresh Issue: 62,00,000 Shares Worth ₹130.20 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹200 – ₹210 |
| Market Lot | 70 Shares |
| Min Order | 70 Shares (1 Lot) |
| Listing At | BSE, NSE |
| Register | Bigshare Services Pvt Ltd |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
SRM Contractors IPO – Date Schedule
| IPO Open Date | 26 March 2024 |
| IPO Close Date | 28 March 2024 |
| Basis of Allotment Date | 01 April 2024 |
| Initiation of Refund | 02 April 2024 |
| Credit of Shares to Demat Account | 02 April 2024 |
| IPO Listing Date | 03 April 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 28, 2024 |
SRM Contractors IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 70 | ₹14,700 |
| Retail (Max) | 13 | 910 | ₹1,91,100 |
| S-HNI (Min) | 14 | 980 | ₹2,05,800 |
| S-HNI (Max) | 68 | 4,760 | ₹9,99,600 |
| B-HNI (Min) | 69 | 4,830 | ₹10,14,300 |
Competitive Strengths
- Proven track record of efficient execution of roads, tunnels, and slope stabilization works in the difficult terrain of the union territory of Jammu and Kashmir.
- Business model of selecting and clustering of their projects in the union territories of Jammu & Kashmir and Ladakh.
- Continuous Focus on equipment ownership.
- Strong financial performance in the last three financial years.
- In-house integrated model.
- Experienced Promoters with a strong management team.
Company Promoters
- Sanjay Mehta
- Ashley Mehta
- Puneet Pal Singh
Company Financials (Restated Consolidated)
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2021 | 161.94 | 151.11 | 8.27 | 31.96 |
| 31 March 2022 | 265.50 | 242.21 | 17.56 | 31.52 |
| 31 March 2023 | 300.65 | 275.60 | 18.74 | 47.16 |
| 31 December 2023 | 242.27 | 214.11 | 21.07 | 42.32 |
Key Performance Indicator
| KPI | Values |
|---|---|
| ROCE | 29.43% |
| Debt/Equity | 0.5 |
| RoNW | 25.02% |
| P/BV | 4.17 |
| PAT Margin (%) | 8.98 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 11.2 | 8.17 |
| P/E (x) | 18.76 | 25.7 |
Object Of The Issue
- Funding capital expenditure requirements for the purchase of equipment/machinery;
- Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the company;
- Funding the working capital requirements of the company;
- Investment in Project Specific Joint Venture Projects; and
- General Corporate Purpose.
SRM Contractors IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 2 | Man Infra construction limited | 46.87 |
| 2 | 1 | ITD cementation India Limited | 46.56 |
| 3 | 5 | Likhitha Infrastructure Limited | 17.42 |
| 4 | 10 | Udayshivakumar Infra Ltd | 21.17 |
SRM Contractors IPO Promoter Holding
| Pre Issue Share Holding | 99.92% |
| Post Issue Share Holding | 72.92% |
SRM Contractors IPO Prospectus
Company Contact Information
| SRM Contractors Limited Sector 3, Near BJP Head Office, Trikuta Nagar, Jammu -180012 Phone: +91 84918 77114 Email: cs@srmcpl.com Website: https://srmcpl.com/ |
SRM Contractors IPO Registrar
| Bigshare Services Pvt Ltd Phone: +91-22-6263 8200 Email: ipo@bigshareonline.com Website: https://ipo.bigshareonline.com/ipo_status.html |
SRM Contractors IPO Lead Manager(s)
| 1. Interactive Financial Services Ltd |
SRM Contractors IPO FAQs
| What is SRM Contractors IPO? SRM Contractors IPO is a main-board IPO. The issue is priced at ₹200 to ₹210 per equity share. The IPO is to be listed on BSE & NSE. |
| When SRM Contractors IPO will open? The IPO is to open on 26 March 2024 for QIB, NII, and Retail Investors. |
| What is SRM Contractors IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the SRM Contractors IPO? You can apply SRM Contractors IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the SRM Contractors IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “SRM Contractors”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the SRM Contractors IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “SRM Contractors“. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the SRM Contractors IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “SRM Contractors”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the SRM Contractors IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “SRM Contractors”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is SRM Contractors IPO Size? SRM Contractors IPO size is ₹130.20 Crore. |
| What is SRM Contractors IPO Price Band? SRM Contractors IPO Price Band is ₹200 to ₹210. |
| What is SRM Contractors IPO Minimum and Maximum Lot Size? The minimum bid is 70 Shares with ₹14,700 amount while the maximum bid is 910 Shares with ₹1,91,100. |
| What is the SRM Contractors IPO Allotment Date? SRM Contractors IPO allotment date is 01 April 2024. |
| What is the SRM Contractors IPO Listing Date? SRM Contractors IPO listing date is 03 April 2024. The IPO is to list on BSE and NSE. |
