Ahead of the listing, the company’s shares are trading with a GMP of Rs 95, which translates into a listing gain of about 45%.
The issue was booked 86 times at close on strong interest from non-institutional investors.
SRM Contractors’ outlook is bolstered by several key strengths, including its proven track record of efficiently executing road, tunnel, and slope stabilisation projects within its focused region.
Apart from the potential listing gains, analysts also see a compelling proposition for investors with a long-term perspective.
Also Read: Bharti Hexacom’s Rs 4,275 crore IPO opens on Wednesday. What GMP indicates ahead of subscription”Owning their equipment and operating an in-house integrated model ensure project control and cost-efficiency. Additionally, the company has a history of consistent financial performance and maintains a healthy order book, indicating continued revenue generation and growth potential,” said Shivani Nyati, head of wealth, Swastika Investmart.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 & Kashmir and Ladakh.
The company undertakes construction works both as an EPC contractor and on an item-rate basis for infrastructure projects. It also does sub-contracting assignments for infrastructure construction projects.
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.
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.
Interactive Financial Services is the sole book-running lead manager for the IPO and Bigshare Services is the registrar.
