SRM Contractors Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the SRM Contractors Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹210
Per ShareLot Size
70 Shares
Minimum Investment
₹14,700
Issue Size
₹130.2 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
SRM Contractors Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
90.37%
Issue Type
Book Building
ISIN
INE0R6Z01013
About the Company
SRM Contractors Limited 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. The Company also undertakes sub-contracting assignments of infrastructure construction projects. The Company has a track record of successful execution of road, tunnel and slope stabilization projects in the difficult terrain of union territories of Jammu & Kashmir and Ladakh and the company, thus, believes that it has developed the expertise and know-how to undertake infrastructure construction projects in difficult terrains. The Company has emerged as a key player in infrastructure construction industry in the Union Territories of Jammu & Kashmir and Ladakh and has developed technical capabilities to execute projects in hilly/ challenging terrain in the region.
Industry Overview
In the recent years, J&K has received a boost in road infrastructure development. In recent years, the government's relentless focus on improving road infrastructure in the Union Territory of Jammu and Kashmir (J&K) has ushered in a wave of transformation, revolutionizing connectivity and fostering economic prosperity across the region. Union Territory of Jammu & Kashmir has been rapidly emerging as one of the fastest developing economies in the country. This transformation has played a pivotal role in not only enhancing economic growth but also in fostering connectivity that has bridged geographical and developmental gaps within the region. Over the period of 2020-2022, road and tunnel infrastructure have been prioritized, with approximately one lakh crore being allocated for the construction of a robust road network. Major upcoming infrastructure projects J&K are (i) Jammu and Srinagar MetroLite (10,599 crores); (ii) Amarnath Marg Project (estimated cost of Project - Rs 1800 Crores); (iii) Upgradation of Khellani Tunnel; and (iv) Srinagar-Baramulla Uri National Highway (estimated cost of project - 823.45 crore).
Company History
SRM Contractors Limited was incorporated on September 4, 2008 as `SRM Contractors Private Limited', a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated September 4, 2008 issued by the Registrar of Companies, Jammu. Subsequently, the Company was converted to a public limited company, pursuant to a special resolution passed by the shareholders of the Company at the extraordinary general meeting held on June 30, 2023 and the name of the Company was changed from "SRM Contractors Private Limited" to "SRM Contractors Limited", pursuant conversion from private to public company and a fresh certificate of incorporation dated August 11, 2023 issued by the Registrar of Companies, Jammu.
Products & Services
- The Company is an engineering construction and development company engaged primarily in the construction of roads, tunnels, slope stabilisation works and other miscellaneous civil construction activities.
Growth Strategy
- Bid for, win and operate hybrid annuity model-based projects.
- Expansion of fleet of machinery and equipment.
- Focus on rationalizing our indebtedness.
- Further enhance its project execution capabilities.
- Develop and maintain strong relationships with its clients and project specific joint venture partners.
- Leverage core competencies with enhanced in-house integration.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of up to 62,00,000 equity shares of face value of Rs. 10 each ("Equity Shares") of SRM Contractors Limited ("The Company" or the "Issuer") for cash at a price of Rs. 210 per equity share (including a securities premium of Rs. 200 per equity share) ("Issue Price") aggregating up to Rs. 130.20 crores ("The Issue"). The issue will constitute 27.02 % of our post-issue paid-up equity share capital. The face value of the equity shares is Rs. 10 each and the issue price is 21 times the face value of the equity shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Proven track record of efficient execution of roads, tunnels and slope stabilisation works in the difficult terrain of union territory of Jammu and Kashmir.
- Efficient business model of selecting and clustering of our 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.
- The company's business is concentrated in the Union Territory of Jammu & Kashmir and Ladakh and the company is exposed to risks emanating from economic, regulatory and other changes in the Union Territory of Jammu & Kashmir and Ladakh.
- Its revenue is majorly concentrated from projects undertaken or awarded by government authorities in Union Territory of Jammu & Kashmir and Ladakh. Any adverse changes in the central or policies in the Union Territory of Jammu & Kashmir and Ladakh may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.
- The company derives a significant portion of its revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on its business, financial condition, results of operations, and prospects.
- The company may have certain contingent liabilities and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.
- The company has not yet placed orders in relation to the capital expenditure to be incurred for the proposed purchase of equipment / machineries. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machineries in a timely manner, or at all, the same may result in time and cost over-runs.