The public issue of SRM Contractors, the engineering construction and development company, continued to garner strong response from investors, subscribing 17.42 times till the second day of bidding, i.e. March 27.
Investors bought 7.55 crore equity shares so far as against the IPO size of 43.4 lakh equity shares, as per the subscription data published by exchanges.
High networth individuals (non-institutional investors) provided the maximum support to the issue, picking 45.51 times the allotted quota, followed by retail investors who bid 13.95 times the reserved portion. Qualified institutional buyers bought 2.41 times the portion set aside for them.
The Jammu and Kashmir-based EPC contractor launched its maiden public issue on March 26 for fund raising of Rs 130.20 crore. The 62 lakh equity shares IPO comprises only a fresh issue by the company with no offer-for-sale component.
Also read: PN Gadgil Jewellers files papers for Rs 1,100-crore IPO
SRM Contractors executes road, tunnel and slope stabilisation projects in Jammu & Kashmir and Ladakh and will utilise Rs 31.5 crore out of the net fresh issue proceeds for purchase of equipment/machineries, Rs 10 crore for repaying debt, Rs 46 crore for working capital requirements and Rs 12 crore for investment in project specific joint venture projects.
Given the consistent healthy subscription numbers, the trading premium for its IPO shares has also increased to 43 percent over the upper price band in the grey market, from 33 percent in previous session, the market observers said. The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing.
Also read: Pre-IPO Buzzers: IXIGO flies high, OYO slumps, Mobikwik makes a comeback
The price band for the public issue, which closes on March 28, is Rs 200-210 per share.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
