SRM Contractors Ltd IPO

SRM Contractors Ltd. announces IPO worth INR 130.20cr with a fresh issue of 62L shares. Funds raised will repay debts, purchase machinery, and more.

Important Details

Date: Mar 26 to Mar 28, 2024 Listing Date: April 3, 2024 Price: INR 200 to 210 per share Lot Size: 70 Shares Total Issue Size: INR 130.20cr .

Fundamental Analysis

SRM Contractors IPO shows revenue and profit growth, strong liquidity, & expanding equity, despite EPS issues & declining RoNW trend, signaling cautious optimism in construction.

Peer Comparison

SRM Contractors excels with a RoNW of 30.14% and EPS of ₹90.82, surpassing peers in profitability despite lower total income, showcasing efficient operational management.

Objective

SRM Contractors IPO aims to buy equipment for projects, invest INR 31.50 crores, repay INR 10 crores in borrowings, and address INR 41.50 crores in working capital.

Risks And Challenges

SRM Contractors IPO faces risks from revenue concentration in Jammu  and Kashmir & Ladakh government projects, seasonal cash flow fluctuations, & dependence on top 5 customers.

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Disclaimer:

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