SRM Contractors shares makes muted D-St debut; stock lists at 7% premium

Shares of SRM Contractors Ltd made a muted debut at Dalal Street on Wednesday as the construction player was listed at Rs 225 on BSE, a premium of merely 7.14 per cent over its issue price of Rs 210. Similarly, the stock was listed at a mild premium of 2.50 per cent over the given issue price at Rs 215.25 on the NSE.

However, the listing was way below the expectations. Ahead of its listing, SRM Contactors the company was commanding a premium of Rs 70 per share in the unofficial market, suggesting a listing pop of 33 per cent for the investors. However, the premium stood at Rs 95 apiece about 24 hours ago its debut.

The company has been listed in the trade-to-trade segment or 'T-segment' and will be there for initial 10 trading sessions. It means that the intra-day buying and selling in the stock will not be possible at the counter. The circuit filter for the stock will be only 5 per cent for the stock.

Jammu-based SRM Contractors sold its IPO in the price band of Rs 200-210 per share with a lot size of 70 shares, which was open for bidding between March 26 and March 28. The company aimed to raise around Rs 130.20 crore from its primary offering, which was entirely a fresh share sale of 62 lakh equity shares.

The issue was overall subscribed a solid 86.57 times, thanks to strong bidding from non-institutional bidders (NIIs), whose allocation was booked a whopping 214.94 times. The quota for qualified institutional investors (QIBs) was subscribed 46.97 times, and the portion of retail investors was subscribed 59.59 times during the bidding process.

SRM Contractors is a construction and development company primarily engaged in the construction of roads (including bridges), tunnels, slope stabilization works, and other construction activities in Jammu & Kashmir (J&K) and Ladakh. It operates as an EPC contractor and on a unit-price basis for infrastructure projects and subcontracts infrastructure construction projects.
 

Interactive Financial Services is the sole book running lead manager of the SRM Contractors IPO, while Bigshare Services is the registrar for the issue.