SRM Contractors IPO opens Tuesday. 10 things to know before subscribing to the issue

The initial public offering (IPO) of SRM Contractors will open for subscription tomorrow. The issue closes on March 18. Through the public offer, the company plans to raise around Rs 130 crore. Here are 10 things to know about Krystal Integrated Services IPO before subscribing to the issue.

1) What is the business overview of SRM Contractors?

SRM Contractors is an engineering construction and development company engaged primarily in the construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in the union territories of Jammu and Kashmir and Ladakh.

It provides a comprehensive range of integrated facility management service offerings across multiple sectors, and consequently are among select companies in India that have a wide geographic presence and customer base, catering to almost all end-user segments.

2) What is the industry overview of SRM Contractors?

In recent years, J&K has received a boost in road infrastructure development, following the government’s enhanced focus on improving road infrastructure in the region.

3) What is the size of SRM Contractors IPO?

The IPO is completely a fresh equity issue of 62 lakh shares, aggregating up to Rs 130 crore.

4) What is the price band for SRM Contractors IPO?

The company has fixed a price band of Rs 200-210 per share and investors can bid for 70 shares in one lot in the public offer.

5) What is the structure of SRM Contractors IPO?

The issue is being made through the book building process, wherein 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.

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6) How is the financial performance of SRM Contractors?

In FY23, the company’s revenue from operations increased 13% to Rs 300 crore, while profit after tax rose 7% to Rs 18.74 crore. For the nine months ended December 2023, revenues stood at Rs 242 crore and PAT came in at Rs 20.17 crore.

7) What are the objects of SRM Contractors IPO?

Net proceeds from the public offer will be used for funding capital expenditure for the purchase of equipment, full or part repayment of debt, investment in joint ventures, working capital requirements and general corporate purposes.

8) What is the current GMP of SRM Contractors?

According to market analysts, the current GMP of Krystal Integrated Services is Rs 50 in the unlisted market.

9) Who are the book running lead managers for SRM Contractors IPO?

Interactive Financial Services is the sole book running lead manager for the IPO and Bigshare Services is the registrar.

10) When is the share allotment and listing date of SRM Contractors IPO?

The share allotment for the IPO will be finalised on April 1 and the estimated listing date is April 3.

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