SRM Contractors’ stock makes a tepid market entry, opening with a modest 2.5% premium at ₹215.25 on the NSE

SRM Contractors had a tepid debut on the stock exchanges today. Its shares opened at ₹215.25 on NSE, a 2.5% increase from the issue price of ₹210. On BSE, the opening price was ₹225, marking a 7.14% rise. Despite the lackluster start, the stock climbed nearly 5% amidst volatile trading.

Experts predicted SRM Contractors’ stock to open between ₹270 and ₹290 per share.

On the third day of bidding, the SRM Contractors IPO was oversubscribed by 86.57 times, according to BSE data. Retail and non-institutional investors showed strong interest throughout the three-day bidding period.

The SRM IPO allocated 50% of shares to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail investors. The price band for SRM Contractors IPO was set between ₹200 and ₹210 per share, with a face value of ₹10. Investors had to bid for a minimum of 70 shares and in multiples thereafter.

On Friday, March 22, the SRM Contractors IPO secured ₹39 crore from anchor investors. The company operates in the Union Territories of Jammu & Kashmir and Ladakh, engaging in various civil construction projects such as tunnels, slope stabilization projects, roadways (including bridges), and others.

Its proficiency in handling assignments in the challenging terrains of these regions has propelled its growth, establishing it as a key player in the infrastructure development sector.

Details of the SRM Contractors IPO

The SRM IPO includes 62,00,000 fresh equity shares valued at ₹130.20 crore, with no offer-for-sale component.

The proceeds from the offering will fund working capital, joint venture projects, loan repayments, and general corporate needs. Additionally, funds will cover machinery and equipment costs.

Interactive Financial Services Ltd is the IPO’s book running lead manager, with Bigshare Services Pvt Ltd serving as registrar.

Current Grey Market Premium (GMP) for SRM Contractors IPO

The Grey Market Premium (GMP) for SRM Contractors IPO is +70, suggesting that the shares are trading at a premium of ₹70 in the grey market. Based on this premium and the upper end of the IPO pricing band, the predicted listing price for SRM Contractors shares is ₹280 each, reflecting a 33.33% increase from the IPO price of ₹210.

Over the past 16 sessions, grey market activity shows a declining trend in the current GMP of ₹70. Experts at investorgain note that the GMP has ranged between ₹25 to ₹125, signifying investors’ willingness to pay above the issue price.

You might also be interested in – ABFRL plans to separate its Madura Fashion business into a distinct publicly listed company