SRM CONTRACTORS LIMITED IPO
SRM CONTRACTORS LIMITED COMPANY PROFILE :
Incorporated in September 2008, SRM Contractors Limited is an engineering construction and development company primarily involved in constructing roads (including bridges), tunnels, slope stabilization works, and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh. Their scope of work includes both EPC contracting and item rate-based construction for infrastructure projects, along with subcontracting assignments for infrastructure construction projects. Emerging as a key player in the infrastructure construction industry within the Union Territories of Jammu & Kashmir and Ladakh, they have developed technical capabilities to execute projects in hilly and challenging terrains in the region.
SRM Contractors Limited is an ISO 9001:2015 certified company and registered as a class A contractor with the Public Works (R&B) Department, Jammu & Kashmir, they possess the capacity to independently bid on projects tendered by governmental authorities and other entities funded by the Government of India. Their pre-qualification extends to projects with contract values of up to ₹30,000 lakhs for road construction (including bridges) and ₹50,000 lakhs for tunnel construction under EPC contracts. This signifies the growth of their road and tunnel construction business, in alignment with recent government initiatives.
Since its incorporation, the company, both independently and through project-specific joint ventures, has successfully completed thirty-eight (38) infrastructure construction projects, with a cumulative contract value totaling ₹1,41,165.62 lakhs. As of January 31, 2024, the company’s order book, inclusive of subcontracting assignments, stood at ₹11,931.33 lakhs. This reflects a significant increase from ₹83,469.37 lakhs as of March 31, 2023, ₹25,788.32 lakhs as of March 31, 2022, and ₹43,257.33 lakhs as of March 31, 2021.
Their major clients encompass various prominent entities, including the National Highways & Infrastructure Development Corporation Limited (NHIDCL) under the Ministry of Road Transport & Highways, Government of India (MoRTH), Konkan Railway Corporation Limited (KRCL), the Economic Reconstruction Agency of Jammu & Kashmir (ERA, Jammu), the Border Roads Organisation (BRO), the Public Works (R&B) Department of Jammu & Kashmir (PWD, J&K), Northern Railway, the Irrigation & Flood Control Department of J&K, and the Jammu & Kashmir Rural Roads Development Agency (JKRRDA). Additionally, the company undertakes subcontracting assignments from third-party infrastructure and construction entities executing projects in the Union Territories of Jammu & Kashmir.
They possess and maintain a fleet of 228 equipment and machineries, which includes over 100 major machineries and equipment such as boomers, shotcrete machines, batching plants, excavators, hot mix plants, ready mix concrete plants, stone crushing units, compactors, and various others.As of January 31, 2024, the company employs a total of 275 individuals, encompassing both skilled personnel and on-site workers who are actively involved in various ongoing projects.
SRM CONTRACTORS LIMITED IPO INFORMATION:
- Issue date: 26-Mar-2024 to 28-Mar-2024
- Price range: Rs. 200/- to Rs. 210/-
- Issue size: ₹130.2 Crores
- Face value : Re.10 per Equity Share
- Bid lot (retail) : 1 LOT – 70 Shares – ₹ 14,700
- Fresh issue : ₹130.2 Crores
- OFS : None
- Allotment date : 01 – April – 2024
- Listing date : 03 – April – 2024
- Promoter holding : 99.92 %
- Name of registrar : Bigshare Services Private Limited
- IPO reservation – QIB – 50% | NII – 15% | Retail – 35%
SRM CONTRACTORS LIMITED GMP(Expected): ₹ 50 ( Expected listing gains of 23.8% )
SRM CONTRACTORS LIMITED FINANCIAL INFORMATION :
SRM Contractors Limited CONSOLIDATED STATEMENT OF PROFIT & LOSS :
| All Numbers are in Rs Lakhs | 9M Period ended 31st December 2023 | For the year ended 31st March 2023 |
|---|---|---|
| Total Income | 24,227.63 | 30,065.09 |
| Total Expenses | 21411.78 | 27,560.23 |
| Profit/ (loss) before tax | 2815.85 | 2,504.86 |
| Net Profit after tax | 2107.11 | 1,874.62 |
| Total comprehensive income after tax | 2107.11 | 1,874.62 |
| EPS Basic (Adjusted) | 12.58 | 90.82 |
SRM CONTRACTORS LIMITED FINANCIAL AND OPERATIONAL PERFORMANCE INDICATORS :
As on December 31, 2023
- Net Profit Margin (in %) – 8.98 %
- Return on Net Worth (in %) – 25.02 %
- Return on Capital Employed (in %) – 29.43 %
- Debt-Equity Ratio – 0.50
- Debt Service Coverage Ratio – 3.13
- EBIDTA Margin (in %) – 15.88%
SRM CONTRACTORS LIMITED IPO OBJECTS OF THE ISSUE :
The allocation of the funds raised is as follows:
- Funding capital expenditure requirements for the purchase of equipment/machineries: ₹3,150.00(₹ In lakhs)
- Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by our Company: ₹1,000.00(₹ In lakhs)
- Funding the Working Capital requirement: ₹4,600.00(₹ In lakhs)
- Investment in Joint Venture Project: ₹1,200.00(₹ In lakhs)
- General corporate purposes