SRM Contractors Shares Close 12% Higher on Debut

New Delhi, Apr 3 (PTI) Engineering, construction and development company SRM Contractors closed with gains of 12 per cent over the issue price in its debut trade on Wednesday.

Shares of the company were listed at Rs 225, reflecting a premium of 7.14 per cent to the issue price of Rs 210 per share on BSE.

The stock closed the day at Rs 236.20 apiece, reflecting a jump of 12.48 per cent from the issue price.

On the NSE, SRM Contractors shares listed at Rs 215.25, up by 2.50 per cent against the issue price. The scrip ended at Rs 226 per piece, up by 7.49 per cent.

During the day, shares of the company hit the upper circuit limit on both bourses.

At close, the company's market valuation stood at Rs 541.94 crore on the BSE.

In volume terms, 10.11 lakh equity shares were traded on the NSE while 3.49 lakh shares were traded on the BSE during the day.

On Wednesday, the 30-share BSE Sensex benchmark fell 27.09 points, or 0.04 per cent, to close at 73,876.82. The broader Nifty went lower 18.65 points to end at 22,434.65.

The Initial Public Offering (IPO) of SRM Contractors got subscribed 86.57 times on the last day of bidding on March 28.

The IPO had a fresh issue of up to 62 lakh equity shares at a price range of Rs 200-210 per share, aggregating up to Rs 130.20 crore.

SRM Contractors is an engineering construction and development company engaged primarily in the construction of roads (including bridges), tunnels, slope stabilization works and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh, as per its website.

The company was incorporated in September 2008.

Interactive Financial Services is the manager to the offer.