About the Company:
SRM Contractors Ltd is an engineering construction and development company engaged primarily in 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.
Company undertake construction works both as an EPC contractor and on an item rate basis for infrastructure projects.
Company also undertakes sub-contracting assignments of infrastructure construction projects.
Company has a track record of successful execution of road, tunnel and slope stabilization projects in the difficult terrain of union territories of Jammu & Kashmir and Ladakh and has developed the expertise and know-how to undertake infrastructure construction projects in difficult terrains.
Company has emerged as a key player in infrastructure construction industry in the Union Territories of Jammu & Kashmir and Ladakh and has developed technical capabilities to execute projects in hilly/ challenging terrain in the region.
Company is an ISO 9001:2015 certified company and are also registered as class A contractor with Public Work (R&B) Department, Jammu & Kashmir.
As on January 31, 2024, company has 275 employees comprising both skilled and on-site workers engaged in various projects.
Company’s Business Verticals:
Road Projects:
The roads division undertakes the 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, Company is also engaged in the construction of bridges including standalone bridges.
Tunnel Projects :
The tunnel division undertakes 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 modification and stabilisation of existing tunnels in difficult terrain of Union Territories of Jammu & Kashmir and Ladakh.
Slope stabilization works:
Slope stabilization refers to the application of various engineering techniques, measures and methods to solidify and stabilize a slope that is either inherently unstable or insufficiently stable.
The slope stabilisation division undertakes designing and construction of reinforced soil steepened slope structures as part of slope stabilization works.
Other miscellaneous civil construction activities:
Company also undertakes other construction activities such as construction of government housing and residential units, drainage works and irrigation & flood control works.
Company’s Background:
Company was incorporated in September 2008 and have gradually increased the execution capabilities in terms of the size of projects that we are now bidding for and executing.
Since incorporation, Company, independently and through project-specific joint ventures, has completed thirty-eight (38) infrastructure construction projects having an aggregate contract value of Rs.1411.65 crores.
Projects Completed by the Company till date:
Company’s Completed projects includes thirty-two (32) roads projects, three (3) tunnel projects, one (1) slope stabilisation works and two (2) other miscellaneous civil construction activities.
Out of the thirty-eight (38) projects executed by ompany, thirty (30) infrastructure construction projects, including sub-contracting assignments, have been executed independently by us and eight (8) projects have been executed through project specific joint ventures.
Company’s Order Book:
Company’s order book in terms of value of contracts, including subcontracting assignments, was Rs.1199.31 crores as on January 31, 2024.
Company’s Clients:
- National Highways & Infrastructure Development Corporation Ltd
- Ministry of Road Transport & Highways
- Government of India (NHIDCL)
- Ministry of Road Transport and Highways (MoRTH)
- Border Road Organisation (BRO).
- Public Work (R&B) Department.
- Jammu & Kashmir (PWD J&K)
- Northern Railway
- Irrigation & Flood Control Department, J&K
- J&K Rural Roads Development Agency (JKRRDA).
Management Team:
- Mr. Sanjay Mehta (Designation: Managing Director)
- Mr. Ashley Mehta (Designation: Non-executive Director)
Objectives of the Issue:
Fresh Issue : (Rs.130 cr)
- Funding capital expenditure requirements for the purchase of equipment/machineries.
- Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by our Company.
- Funding the working capital requirements of our Company.
- Investment in Project Specific Joint Venture Projects.
- General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Lakhs/Crores) |
|---|---|
| Funding capital expenditure requirements for the purchase of equipment/machineries | 31.50 cr |
| Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by our Company | 10 cr |
| Funding the Working Capital requirement | 46 cr |
| Investment In Joint Venture Project | 12.0 cr |
Positives for the Company:
Company is registered as class A contractor with Public Work (R&B) Department, Jammu & Kashmir.
- Company is pre-qualified to bid independently on projects, tendered by departments of governmental authorities and other entities funded by the GoI, of contract value up to Rs.300 cr and Rs. 500 cr for EPC contracts pertaining to construction of roads (including bridges) and for construction of tunnel respectively.
- As a result of the growth of our road and tunnel construction business as well as the recent government initiatives and support to develop the infrastructure of union territories of Jammu & Kashmir and Ladakh, company has further forayed into executing other infrastructure projects such as standalone bridges, larger slope stabilisation works and other civil construction activities in order to capitalise on such rising opportunities.
- Recently, company has also been awared with a contract for slope stabilization work in the state of Uttrakhand.
Company has manpower, resources and fleet of machinery and equipment to execute Large projects.
- Company has manpower, resources and fleet of machinery and equipment, together with our engineering capabilities, enables us to execute a large number of projects simultaneously.
- Company believes that the resources, quality of work and project execution skills have enabled us to enhance our relationships with existing clients and helps us to further secure projects from new clients.
Over the years, Company has gradually increased its execution capabilities in terms of the size of projects.
- For instance, one of the first road projects awarded to us by Government of Jammu and Kashmir Economic Reconstruction Agency in the month of February 2011 for widening of Sakhi-Maidan-Kalai road in District Poonch with the project cost of Rs.7.7 crores.
- whereas, one of the project recently awarded by Ministry of Road Transport and Highways in calendar year 2023 i.e. Construction of realignment between Pandrass- Pashkyum is having a project cost of Rs.205.68 crores.
Continuous Focus on equipment ownership.
- Equipment asset management is a critical element of timely delivery of quality infrastructure development and construction projects. Company own a large fleet of sophisticated construction equipment which enables us to be less dependent on third party equipment providers and to efficiently manage our project execution schedules.
- Company believes that this also provides us with a competitive advantage over other infrastructure development and construction companies that outsource their construction activities to external contractors.
- As on January 31, 2024, company owned equipment fleet comprised 228 construction equipment and machinery.
- Further, as on December 31, 2023, the aggregate gross block value of Company’s property, plant and equipment was Rs.73.05 crores.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31st Dec 23 |
|---|---|---|---|---|
| Revenue | 161.94 | 265.50 | 300.65 | 242.27 |
| Net Profit | 8.27 | 17.56 | 18.74 | 21.07 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| SRM Contactors Ltd | 10 | 12.58 | 16.69 | 25.21% | 50.31 |
| Man Infraconstruction Ltd | 1 | 4.47 | 46.87 | 14.61% | 30.60 |
| Udayshivakumar Infra Ltd | 10 | 2.90 | 21.17 | 11.13% | 26.05 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 26th March 2024 |
| Issue Closes on | 28th March 2024 |
| Issue Price | Rs.200 -210 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35 % |
| Minimum Lot | 70 Shares |
| Minimum Investment | Rs.14,700 |
| Issue Constitutes | 27.02 % |
| Issue Size | Rs.130 cr ($ 15 million ) |
| Market Cap | Rs.481 cr ($ 58 million ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 62,00,000 (Rs.130 cr) |
| Equity Shares Prior to the Issue | 1,67,44,200 |
| Equity Shares after the Issue | 2,29,44,200 |
Also Read : List of Upcoming IPO’s in India>>
Important Dates:
| Finalization of Basis of Allotment | on or Before 1st April 2024 |
| Initiation of Refunds | on or Before 2nd April 2024 |
| Credit of Equity Shares: | on or Before 2nd April 2024 |
| Listing Date: | on or Before 3rd April 2024 |
Also Read: List of Upcoming SME IPO’s in India.>>
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 12.58 | 16.69 | 25.21% | 50.31 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? |
|---|
| SRM Contractors Ltd stands as a prominent player in the realm of engineering construction and development, focusing primarily on projects in the Union Territories of Jammu & Kashmir and Ladakh. Specializing in road construction, including bridges, tunnels, slope stabilisation works, and various civil construction activities, the company plays a pivotal role in enhancing the region’s infrastructure.
With the recent surge in road and tunnel construction projects, coupled with government initiatives aimed at bolstering the infrastructure of Jammu & Kashmir and Ladakh, SRM Contractors Ltd finds itself in a promising position for growth. The company’s dedication to delivering quality projects, coupled with the supportive regulatory environment, underscores its potential for expansion and success. Market Guruji’s endorsement of SRM Contractors Ltd as a ‘subscribe’ reflects confidence in the company’s growth trajectory, making it an enticing prospect for investors looking to capitalize on the region’s infrastructure development boom. |
| Company Contact Info: |
|---|
| SRM Contractors Limited Sector 3, Near BJP Head Office, Trikuta Nagar, Jammu – 180012, Jammu and Kashmir, India Tel: +91 84918 77114 / + 0191 2472729 E-mail: cs@srmcpl.com Website: www.srmcpl.com |
| Registrar to the Issue: |
|---|
| Bigshare Services Private Limited Office No. S6-2, 6th Floor Pinnacle Business Park, Next to Ahura Center ahakali Caves Road, Andheri East, Mumbai-400093 Tel: +91 22-6263 8200 E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| Interactive Financial Services Limited Office No. 508, Fifth Floor Priviera, Nehru Nagar Ahmedabad – 380 015, Gujarat, India Tel: +91 079-4908 8019 Email: mbd@ifinservices.in Website: www.ifinservices.in |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment
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