SRM Contractors IPO Set to Debut Today with Strong Grey Market Premium: Experts Predict Robust Listing

SRM Contractors IPO is set to debut on the stock market today, Wednesday, April 3, at 10:00 AM IST. The IPO, which focuses on construction projects in Jammu & Kashmir and Ladakh, garnered massive investor interest with subscriptions reaching a whopping 86.57 times the offer size. This indicates strong anticipation for the company’s listing.

Experts predict a promising future for SRM Contractors, noting its expanding fleet of machinery and growing order book, which reached ₹1,199.32 crore by January 31, 2024. Analysts suggest that the IPO might list between ₹260 and ₹300 per share, considering the prevailing market sentiment.

However, some caution against over-optimism, citing potential pressure post-listing. They advise investors to be wary, as recent IPOs have shown a tendency to falter after initial high listings.

As of now, the Grey Market Premium (GMP) for SRM Contractors IPO stands at +80, indicating a considerable premium over the issue price. Based on this, the expected listing price is around ₹290 per share, representing a 38.1% increase over the IPO price of ₹210.

Overall, the IPO’s GMP has been trending upward, suggesting positive prospects for its listing. Grey market premiums reflect investors’ willingness to pay more than the issue price, indicating high demand for the stock.