SRM Contractors IPO achieves a solid debut, securing a modest 2.5% premium

SRM Contractors IPO made its debut on stock exchanges today, with investors eagerly anticipating its listing. Construction company's shares were listed on both BSE & NSE at 10:00 IST. Amidst market expectations, SRM Contractors shares opened with modest 2.5% premium on NSE, starting at ₹215.25 per share, slightly higher than issue price of ₹210. Conversely, on BSE, stock debuted at ₹225 per share, reflecting premium of 7% over its issue price.

SRM Contractors IPO, which opened for subscription from March 26 to March 28, saw robust response from investors, with subscription status reaching 86.57 times by third day of bidding. Retail & non-institutional investors displayed significant interest throughout bidding period. Company aimed to raise ₹130.20 crore through issuance of fresh 62 lakh company shares, priced in range of ₹200 to ₹210 per equity share.

Check SRM Contractors IPO Subscribed 86.56 times

Prior to its listing, SRM Contractors generated substantial buzz in grey market, with shares commanding premium of 33% over issue price. However, listing fell short of market's high expectations, as actual premium stood at modest 2.5%.

SRM Contractors operates in construction & development sector, primarily focusing on roads & tunnels, with notable presence in Union Territories of Jammu & Kashmir & Ladakh. company also acts as subcontractor for various infrastructure projects.

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Despite lukewarm debut, market analysts remain optimistic about SRM Contractors' long-term prospects. Company boasts strong regional presence, bolstered by in-house capabilities & healthy order book. Additionally, ongoing infrastructure projects in J&K are expected to fur r augment its growth trajectory.

Shivani Nyati, Head of Wealth at Swastik Investmart, advises cautious approach, emphasizing company's expansion plans & its potential for future growth. Furthermore, Vishnu Kant Upadhyay, Assistant Vice President at Master Capital Service, suggests that investors may consider holding stock for long term, anticipating listing price between ₹260 to ₹300 per share.

To Summarize

SRM Contractors IPO made lukewarm debut on stock exchanges, with shares listing at modest 2.5% premium at NSE at ₹215.25 on BSE, stock debuted at ₹225 per share, reflecting premium of 7% over its issue price. However, company's strong fundamentals & growth prospects may pave way for sustained performance in future. Investors are advised to carefully evaluate stock's potential & consider long-term investment strategies.