SRM Contractors, the construction and development company, will launch its Rs 130.20 crore initial public offering (IPO) on March 26.
The offer is purely a fresh issue of 62 lakh equity shares with no offer-for-sale component. The price band has been fixed at Rs 200-210 a share.
The issue will close on March 28, while the anchor book will be open for a day on March 22.
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Half of the IPO size has been reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors.
Investors can bid for a minimum of 70 equity shares and in multiples of 70 thereafter. The minimum investment by retail investors in the issue will be Rs 14,700 (for 70 shares) and the maximum will be Rs 1,91,100 (for 910 shares) at the upper price band.
The Jammu and Kashmir-based company that builds roads, tunnels, and also takes up slope stabilisation works in the Union Territories of J&K and Ladakh is going to utilise Rs 31.5 crore of the proceeds to purchase equipment. A sum of Rs 46 crore will be set aside as working capital and Rs 10 crore for repaying debt.
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Further, Rs 12 crore will be invested in project specific joint ventures and the remaining funds will be for general corporate purposes, the company has said.
As of December, the company had a loan of Rs 32.74 crore.
SRM Contractors recorded a net profit of Rs 18.75 crore in FY23, up from Rs 17.57 crore. Revenue increased from Rs 263.3 crore in FY22 to Rs 300.3 crore.
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In the nine months period of the current financial year, net profit stood at Rs 21.07 crore on revenue of Rs 234.55 crore.
Interactive Financial Services is the sole book running lead manager to the issue.
