SRM Contractors mobilises Rs 39 crore from anchor investors ahead of IPO

Construction and development company SRM Contractors has raised Rs 39.06 crore from three anchor investors on March 22, a day before the public issue opening.

The IPO is scheduled to open on March 26 and the last day for bidding the issue will be March 28.

“…has finalised allocation of 18,59,900 equity shares to anchor investors at Rs 210 per equity share,” the company said in its filing to exchanges.

Neomile Growth Fund – Series I was the largest institutional investor in the anchor book, picking 9.05 lakh equity shares worth Rs 19 crore, while Saint Capital Fund, and Astorne Capital VCC – Arven bought 4.77 lakh equity shares each worth Rs 10 crore.

The Jammu & Kashmir-based EPC contractor aims to raise Rs 130.20 crore through initial public offering of 62 lakh equity shares at the upper price band.

Also read: Vijay Kedia-backed Tac Security to be India’s first cybersecurity IPO, opening on March 27

The IPO comprises only a fresh issue component with no offer-for-sale portion, and the price band has been fixed at Rs 200-210 per share.

This means the entire issue proceeds will be received by the company, of which Rs 31.5 crore will be utilised for purchase of equipment/machinery, and Rs 10 crore for repaying debts.

Further, Rs 46 crore will be used for working capital requirements of the company, Rs 12 crore for investment in project specific joint venture projects; and the remaining fresh issue money for general corporate purpose.

SRM Contractors primarily does the construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh.