SRM Contractors
Book Building issueMainboard₹130 Cr issue
+7.14%
Listing gain over issue price
Issue size
₹130 Cr
1 lot at cut-off
₹14,700
Lot size
70shares
Open
26 Mar 2024
Close
28 Mar 2024
Allotment
01 Apr 2024
Listing
03 Apr 2024
Listing performance
Issue price
₹210
Listed at
₹225
Listing-day close
₹236.20
Latest price
₹348.75
Close on 23 Oct 2026
Listing gain
+7.14%
Return since issue
+66.07%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Mar 2024 – 28 Mar 2024
- Listing date
- 03 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹210 per share
- Lot size
- 70 shares
- Issue type
- Book Building issue
- Total issue size
- ₹130 Cr
- Market cap at offer price
- ₹482 Cr
- Promoter holding
- 99.92% → 72.92% pre-issue → post-issue
- ISIN
- INE0R6Z01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- Sector 3, Near BJP Head Office, Trikuta Nagar, Jammu and Kashmir
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 18,59,900 | — | — |
Application size
Minimum 70 shares per lot, in multiples, at ₹210
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 70 | ₹14,700 |
| Retail (max) | 13 | 910 | ₹1,91,100 |
| S-HNI (min) | 14 | 980 | ₹2,05,800 |
| S-HNI (max) | 68 | 4,760 | ₹9,99,600 |
| B-HNI (min) | 69 | 4,830 | ₹10,14,300 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
18,59,900
Anchor portion
₹39.06 Cr
at ₹210 per share
Valuation and performance
Valuation at offer price
₹210 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.20 | 12.24 |
| P/E (×) | 18.75 | 17.16 |
| Price to book (×) | 4.17 | — |
| Market cap | — | ₹482 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 25.02%
- ROCE
- 29.43%
- Debt / equity
- 0.50
- PAT margin
- 8.98%
- NAV per share
- ₹50.31
- Price to book
- 4.17
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About SRM Contractors
SRM Contractors Limited was incorporated on September 4, 2008 as a private limited company and converted to a public limited company in August 2023. The company specializes in infrastructure construction projects undertaken both as an EPC contractor and on an item rate basis. The company has developed expertise in executing projects in difficult terrains of hilly and challenging regions. The company derives its revenue from construction contracts with government entities, agencies funded by the Government of India, and private infrastructure entities. The company undertakes projects independently and through project-specific joint ventures. In January and February 2024, the company was awarded contracts for slope stabilization work in Uttarakhand, slope rehabilitation works in Arunachal Pradesh and slope protection work in Himachal Pradesh.
Company Analysis
from RHPSRM Contractors Limited is an engineering construction company engaged in building roads (including bridges), tunnels, slope stabilisation works and other civil construction activities primarily in the Union Territories of Jammu & Kashmir and Ladakh.
SRM Contractors Limited was incorporated on September 4, 2008 as a private limited company and converted to a public limited company in August 2023. The company specializes in infrastructure construction projects undertaken both as an EPC contractor and on an item rate basis. The company has developed expertise in executing projects in difficult terrains of hilly and challenging regions. The company derives its revenue from construction contracts with government entities, agencies funded by the Government of India, and private infrastructure entities. The company undertakes projects independently and through project-specific joint ventures. In January and February 2024, the company was awarded contracts for slope stabilization work in Uttarakhand, slope rehabilitation works in Arunachal Pradesh and slope protection work in Himachal Pradesh.
Infrastructure constructionRoads and highways constructionTunnel constructionSlope stabilisation and protection worksCivil construction
Objects of the Issue
- Funding capital expenditure requirements for the purchase of equipment/machineries ₹3,150.00 lakhs p.30
- Full or part repayment and/or prepayment of certain outstanding secured borrowings (including foreclosure charges, if any) availed by our Company ₹1,000.00 lakhs p.30
- Funding the working capital requirement ₹4,600.00 lakhs p.30
- Investment in joint venture projects ₹1,200.00 lakhs p.30
- General corporate purposes p.30
- Funding capital expenditure requirements for the purchase of equipment/machineries ₹3,150.00 lakhs p.99
- Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by our Company ₹1,000.00 lakhs p.99
- Funding the working capital requirements of our Company ₹4,600.00 lakhs p.99
- Investment in Project Specific Joint Venture Projects ₹1,200.00 lakhs p.99
- General Corporate Purpose p.99
- Funding working capital requirements ₹4,150.00 lakhs p.114
- Investment in SRM-Rajinder Projects Joint Venture ₹1,200.00 lakhs p.118
- General corporate purposes Not to exceed 25% of net proceeds p.120
- Acquisition of equipment and machinery p.194
- Repayment or prepayment of borrowings p.194
- Investment in project specific joint ventures p.194
Issue Structure
- Total Issue
- up to ₹[●] lakhs
- Fresh Issue
- Fresh Issue of up to 62,00,000 Equity Shares aggregating up to ₹[●] lakhs
- Offer for Sale
- Not Applicable
- Price Band
- Price Band of a minimum price of ₹ [●] per Equity Share (Floor Price) and the maximum price of ₹[●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 each
Business Model
The company generates revenue through engineering, procurement, and construction (EPC) contracts and item rate basis contracts for infrastructure projects. Revenue is derived from construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities. The company also undertakes sub-contracting assignments of infrastructure construction projects from third party major infrastructure entities. For the nine months period ending December 31, 2023, road projects contributed 74.97% of revenue from operations, slope stabilisation works contributed 24.20%, tunnel projects contributed 0.27%, and other miscellaneous civil construction activities contributed 0.55%.
Business Segments
Construction of roads including bridges
Construction of tunnels
Slope stabilisation and protection works
Other miscellaneous civil construction activities
Construction of roads including bridges, realignment, widening, upgradation, restoration and/or strengthening and improvements of roads & highways and their maintenance in difficult terrain
Designing and construction of new tunnels, cut and cover tunnels for avalanche and slide protection and caverns and also includes widening, upgradation, restoration and/or strengthening and improvements including providing niches/modification in niches and stabilisation of existing tunnels
Slope stabilization and related civil construction activities
Other miscellaneous civil construction activities
Construction of roads and highways including widening, upgradation, and improvement of existing and new roads to 2-lane and higher specifications
Engineering, Procurement and Construction of tunnels including design, construction, and related ancillary works
Hill Slope Stabilization and rehabilitation of slopes from landslide and erosion
Designing and construction of realignment, widening, upgradation, restoration and/or strengthening and improvements of roads & highways and their maintenance in difficult terrain of Union Territories of Jammu & Kashmir and Ladakh. Under this business division, the Company is also engaged in the construction of bridges including standalone bridges.
Designing and construction of new tunnels, cut and cover tunnels for avalanche and slide protection and caverns and also includes widening, upgradation, restoration and/or strengthening and improvements including providing niches/modification in niches and stabilisation of existing tunnels in difficult terrain of Union Territories of Jammu & Kashmir and Ladakh.
Application of various engineering techniques, measures and methods to solidify and stabilize slopes that are either inherently unstable or insufficiently stable. The Company undertakes designing and construction of reinforced soil steepened slope structures as part of slope stabilization works. These slope stabilization works are essential to safeguard infrastructure, protect the environment, and ensure public safety.
Construction of government housing and residential units, drainage works and irrigation & flood control works.
Provides engineering, procurement and construction services for roads, tunnels, bridges, railways and related infrastructure projects
Construction of roads including bridges
Construction of tunnels
Slope stabilization and protection works
Other miscellaneous civil construction activities
SWOT Analysis
Strengths
- • Established expertise in difficult terrain infrastructure construction(p.29)
- • Key player in J&K infrastructure construction with technical capabilities(p.29)
- • Integrated in-house execution model with comprehensive capabilities(p.50)
- • Modern equipment fleet of 228 construction equipment and machineries(p.47)
- • Established track record of successful project execution in difficult terrain(p.59)
- • Completed 38 projects with significant aggregate contract value(p.66)
- • Experienced management team with strong industry knowledge and relationships(p.57)
- • Class A contractor registration providing competitive advantage(p.62)
- • Strong order book across multiple infrastructure segments(p.54)
- • Proven execution track record in difficult terrain (Jammu & Kashmir)(p.125)
- • Clustered project portfolio in specific geographies (J&K and Ladakh)(p.125)
- • Equipment ownership and control(p.125)
- • Strong financial performance trajectory(p.125)
- • Integrated in-house execution model(p.125)
- • Experienced promoters and management team(p.125)
- • Substantial revenue growth and profitability(p.114)
- • Strong order book and pipeline(p.114)
- • Proven track record in difficult terrain construction(p.191)
- • Focused business model in clustered geography(p.191)
- • Significant owned equipment fleet(p.192)
- • Strong financial performance and growth(p.192)
- • In-house integrated business model(p.193)
- • Experienced management team with industry expertise(p.193)
- • Key player status in region(p.191)
- • Healthy debt metrics and profitability(p.189)
- • Established track record in infrastructure EPC projects with decades of project execution experience(p.235)
- • In-house infrastructure facilities reduce dependency on external suppliers for project execution(p.226)
- • Diversified project portfolio across roads, tunnels, bridges and railway infrastructure(p.224)
- • Growing order book with significant contract awards in recent years(p.225)
- • No time or cost overruns in business operations demonstrating execution discipline(p.225)
- • Experienced infrastructure contractor in difficult terrains of J&K and Ladakh(p.305)
- • Pre-qualified for large government contracts(p.305)
- • ISO 9001:2015 certified with Class A contractor registration(p.305)
- • Strong order book and project execution capability(p.306)
- • Improving financial metrics and profitability(p.307)
Weaknesses
- • Business concentrated in single geographic region (J&K and Ladakh)(p.36)
- • Revenue highly concentrated from limited number of clients(p.39)
- • Substantial portion of revenue from sub-contracted works(p.39)
- • Directors lack public company experience(p.47)
- • Non-compliance with Corporate Social Responsibility obligations(p.49)
- • Significant litigation exposure across multiple categories(p.45)
- • Dependence on joint venture partners for 54.63% of revenues(p.48)
- • High fixed costs from large equipment fleet requiring significant maintenance(p.47)
- • Properties held in promoter's name due to historical legal restrictions(p.54)
- • Outstanding litigation regarding property dispute with Jammu Development Authority(p.54)
- • Dependence on promoter personal guarantees and mortgaged properties for debt facilities(p.57)
- • Trademark not yet registered, creating IP protection vulnerability(p.58)
- • Delays in GST returns and EPF payments in the past(p.69)
- • Some agreements contain irregularities such as illegible dates and inadequate stamping(p.68)
- • Significant reliance on key personnel and risk of losing promoter(p.57)
- • High working capital intensity with substantial trade receivables(p.65)
- • High working capital requirements due to project margin deposits(p.114)
- • Geographic concentration risk in J&K and Ladakh(p.118)
- • Dependence on joint venture arrangements for certain projects(p.118)
- • Dependence on subcontractors for execution(p.204)
- • Geographic concentration in J&K and Ladakh(p.186)
- • Heavy dependence on government clients(p.199)
- • Properties held in promoter name not company name(p.212)
- • Unresolved property registration issues(p.212)
- • Involvement in pending litigation and arbitration(p.200)
- • High reliance on limited number of government customers for project contracts(p.224)
- • Significant concentration of operations in Jammu & Kashmir and Ladakh regions(p.224)
- • Substantial outstanding litigation involving promoter regarding property dispute(p.240)
- • Significant portion of properties held in promoter's name rather than company name due to historical restrictions(p.240)
- • Limited liquidity in unquoted equity investments held(p.285)
- • Significant dependence on limited client base - government authorities in J&K and Ladakh(p.315)
- • Moderate debt levels constraining leverage capacity(p.296)
- • Multiple pending litigations including property and employment disputes(p.316)
- • Dependence on subcontractors and joint venture partners for project execution(p.308)
Opportunities
- • Government's sustained focus on J&K road infrastructure development(p.29)
- • Major upcoming infrastructure projects in the region(p.29)
- • Expansion into new geographic regions beyond J&K(p.36)
- • Growing slope stabilization and protection work segment(p.44)
- • Government infrastructure development initiatives in J&K and Ladakh(p.106)
- • Expansion into Hybrid Annuity Model (HAM) projects(p.68)
- • Growing infrastructure sector with infrastructure development in difficult terrain regions(p.106)
- • Expansion into Uttrakhand with recent slope stabilization contract award(p.59)
- • Ability to enhance execution capacity through capital equipment investment(p.106)
- • Significant upcoming tunnel infrastructure pipeline in J&K(p.167)
- • Government focus on road infrastructure development in border regions(p.168)
- • Expansion of national highways network under Bharatmala(p.148)
- • Growth in tunnel construction sector with advanced techniques(p.165)
- • Increased budgetary allocation to road infrastructure(p.151)
- • Investment opportunity in joint venture projects(p.119)
- • Expansion into hybrid annuity model projects(p.193)
- • Aggressive government infrastructure spending(p.188)
- • Large upcoming infrastructure pipeline in J&K and Ladakh(p.188)
- • Massive tunnel construction pipeline in J&K(p.188)
- • High growth projection for Indian road sector(p.179)
- • Expansion into additional states and geographies(p.186)
- • Significant national infrastructure investment pipeline(p.188)
- • Expansion into new geographies outside traditional J&K market(p.224)
- • Growing infrastructure development spending through government projects like Bharatmala and Project Himank(p.225)
- • Capability to expand through strategic joint venture partnerships(p.224)
- • Potential to develop real estate and construction-related solutions through subsidiary(p.228)
- • Expansion into new geographies beyond J&K and Ladakh(p.303)
- • Large infrastructure development pipeline in government projects(p.305)
- • Diversification into new project types and capabilities(p.305)
- • Growing order book and project pipeline(p.306)
Threats
- • Regional political instability and terrorism risk in J&K(p.36)
- • Potential reduction in government infrastructure spending(p.36)
- • Seasonal disruption from extreme weather conditions in difficult terrain(p.43)
- • Intense competition from larger domestic infrastructure companies(p.38)
- • Dependence on government contract terms favoring clients(p.38)
- • Project delays from government payment delays and budgetary constraints(p.37)
- • Uncertain outcome of ongoing litigations affecting projects(p.38)
- • Anticipated J&K elections could impact business environment(p.37)
- • Project implementation delays due to factors beyond company control(p.54)
- • Highly competitive construction sector with low entry barriers(p.59)
- • Extreme weather conditions and difficult terrain in J&K(p.64)
- • Security concerns and remote location challenges(p.64)
- • Land acquisition challenges and environmental concerns(p.64)
- • Material cost and supply volatility affecting project profitability(p.61)
- • Wage and operating cost inflation in India(p.62)
- • Regulatory uncertainties including permit and license renewals(p.57)
- • Tunnel construction challenges including complex geology and skilled labor shortage(p.67)
- • Restrictive covenants under financing agreements limiting business flexibility(p.68)
- • Dependence on government agencies and policy changes(p.65)
- • Regulatory and policy changes in road infrastructure(p.132)
- • Complex geological and environmental challenges in project areas(p.168)
- • Competition from established infrastructure players(p.132)
- • Monsoon and weather-related disruptions in mountainous terrain(p.168)
- • Project delays and execution risks in border regions(p.120)
- • Extreme weather and environmental challenges(p.178)
- • Difficult mountainous terrain(p.178)
- • Regional security concerns(p.178)
- • Land acquisition challenges(p.178)
- • Environmental constraints(p.178)
- • Highly competitive construction industry(p.180)
- • Dependence on government tender allocations(p.194)
- • Raw material cost volatility(p.180)
- • Project execution delays and implementation risks inherent in large infrastructure contracts(p.226)
- • Vulnerability to policy changes affecting infrastructure spending and project awards(p.224)
- • Dependence on government and quasi-government entities for contract payments and approvals(p.223)
- • Geographic and seasonal risks from weather conditions affecting construction in high-altitude/remote areas(p.231)
- • Competition from larger, better-capitalized construction firms for major infrastructure contracts(p.224)
- • Project performance risks including time and cost overruns in difficult terrain(p.308)
- • Weather-dependent operations affecting business continuity(p.315)
- • Regulatory and policy changes affecting government infrastructure spending(p.314)
- • Technology obsolescence and adaptation challenges(p.308)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sanjay Mehta | Promoter | 84.99% | — |
| Ashley Mehta | Promoter | 4.78% | — |
| Puneet Pal Singh | Promoter | 0.60% | — |
| Sanjay Mehta | Promoter | 84.99% | — |
| Ashley Mehta | Promoter | 4.78% | — |
| Puneet Pal Singh | Promoter | 0.60% | — |
| Aleena Mehta | Promoter Group | 4.78% | — |
| Kavita Sharma | Promoter Group | 4.78% | — |
| Not provided in this part | Promoter | — | — |
| Sanjay Mehta | Promoter | — | — |
| Sanjay Mehta | Promoter | 84.99% | — |
| Ashley Mehta | Promoter | 4.78% | — |
| Puneet Pal Singh | Promoter | 0.60% | — |
| Sanjay Mehta | Promoter | — | — |
| Puneet Pal Singh | Promoter | — | — |
Leadership
Sanjay Mehta · Managing Director
Puneet Pal Singh · Executive Director / Whole-Time Director
Ashley Mehta · Non-Executive Director
Arun Mathur · Company Secretary and Compliance Officer
Krishan Singh · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
SRM Contractors IPO FAQs
What is the lot size of SRM Contractors IPO?
The minimum lot size of SRM Contractors IPO is 70 shares. One lot costs ₹14,700 at the cut-off price.
When does SRM Contractors IPO open and close?
SRM Contractors IPO opened for subscription on 26 Mar 2024 and closed on 28 Mar 2024.
What is the listing date of SRM Contractors IPO?
SRM Contractors IPO listed on 03 Apr 2024.