SRM Contractors IPO Basis of Allotment

Our Company was incorporated on September 4.2008 as 'SRM Contractors Private Limited', a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated September 4,2008 issued by the Registrar of Companies, Jammu. Subsequently, our Company was converted to a public limited company, pursuant to a special resolution passed by the shareholders of our Company at the extraordinary general meeting held on June 30,2023 and the name of our Company was changed from 'SRM Contractors Private Limited' to "SRM Contractors Limited', pursuant conversion from private to public company and a fresh certificate of incorporation dated August 11, 2023 issued by the Registrar of Companies. Jammu. For details of change in the name and registered office of our Company, see ‘History and Certain Corporate Matters' on page 218 of the Prospectus dated March 29.2024 filed with the RoC ('Prospectus ').

1. In past, our Promoter namely, Sanjay Mehta have made secondary sale of the Equity Shares held by him atRs. 49 per equity shares dated June 19,2023 and transfer price for such secondary sale is lower than the Issue price the Cap price is Rs. 210.

2. Our business is concentrated in the Union Territory of Jammu & Kashmir and Ladakh and we are exposed to risks emanating from economic, regulatory and other changes in the Union Territory of Jammu & Kashmir and Ladakh.

Our business is primarily dependent on projects undertaken or awarded in the Union Territory of Jammu & Kashmir and Ladakh, by our client such as National Highways & Infrastructure Development Corporation Limited -  Ministry of Road Transport & Highways, Government of India (NHIDCL), Konkan Railway Corporation Limited (KRCL), Government of Jammu and Kashmir Economic Reconstruction Agency (ERA, Jammu), 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), other entities funded by the Government of India, J&K Government and Third party major infrastructure and construction entities executing projects in the Union Territory of Jammu & Kashmir and Ladakh.

3. We derive a significant portion of our revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on our business, financial condition, result of operations, and prospects

(in Rs. lakhs)

4. Our business is working capital intensive involving relatively long implementation periods. We require substantial financing for our business operations. Our indebtedness and the condition and restrictions imposed on by our financing arrangements could adversely affect our ability to conduct our business.

Typically, projects in the infrastructure sector which we undertake are working capital intensive in nature and involve long implementation periods. Majority of the working capital funds of our Company are blocked due to providing margin money for Bank Guarantee, Earnest Money Deposit, Performance Deposit and Security deposit (for our Projects) on which the banks are not providing finance. As on December 31, 2023, our Company's networking capital consisted ofRs. 8,622.13 Lakhs. Further, As on March 31,2023, our Company's net working capital consisted of Rs.7,056.79 Lakhs as against Rs.4,585.17 lakhs as on March 31,2022 and Rs.27,32.52 lakhs as on March 31,2020. As on December 31,2023, our total borrowings stood at Rs. 4,232.28 lakhs. We may incur additional indebtedness in the future. Additional debt financing could increase our interest costs and require us to comply with additional restrictive covenants in our financing agreements.

5. We derive majority of our revenues from construction of Roads, Tunnel and Slope Stabilization work and our financial condition would be materially and adversely affected if we fail to obtain new Roads, Tunnel and slope stabilisation work or our current Roads, Tunnel and Slope Stabilization work are terminated.

(in Rs. lakhs)

6. The average cost of acquisition ion of Equity Shares by our Promoters could be lower than the floor price.

7. Our Company is not in strict compliance with the Corporate Social Responsibility as required under the provision of Companies Act 2013.

As per the applicable laws, Our Company is required to spend 2% of its average net profits made during preceding three financial year on CSR activities, we have undertaken CSR activities financial contributions in Prime Minister Cares Fund and local welfare trusts undertaking activities pertaining to the welfare of old age people and education of children and have spent 17.04 lakhs, 1.80 lakhs and 1.81 lakhs in FY 2022-23,2021-22 and 2020-2021, respectively. However, our Company has not met with its statutory requirement of spending Rs. 25.55 lakhs, Rs. 13.39, Rs. 11.21 in FY 2022-23,2021-22 and 2020-2021, respectively and has not complied with requirement of parking the embarked CSR contribution funds into a separate account within the stipulated timelines.

8. Weighted Average Cost of Acquisition for all Equity Shares transacted in one year, eighteen months and three years preceding the date of the Red Herring Prospectus by our Promoters and Promoter group:

9. This is the first Main Board Public Issue being handle by BRLM associated with Issue. The BRLM has handled 14 SME public issues in the past three years, out of which 7 issue closed below the issue price on listing date.

10. Weighted Average Cost of Acquisition for all Equity Shares transacted during eighteen months preceding the date of the Red Herring Prospectus by our Promoters and Promoter group:

This Issue is being made in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBIICDR Regulations. The Issue is being made for at least 25% of the post-issue paid- up Equity Share capital of our Company. This Issue is being made through the Book Building Process in accordance with Regulation 6( 1} of the SEBI ICDR Regulations wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers ('QIBs' and such portion the QIB Portion"), provided that our Company in consultation with the BRIM may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis m accordance with SEBI ICDR Regulations (‘Anchor Investor Portion'). One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. Further. 5% of the NET QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the NET QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 15% of the NET Issue shall be available for allocation on a proportionate basis to Non-lnstitutional Bidders out of which (a) one third of such portion shall be reserved for applicants with application size of more than Rs.2.00 lakhs and up to Rs.10.00 lakhs and (b) two-third of such portion shall be reserved for applicants with application size of more than Rs.10.00 lakhs, provided that the unsubscribed portion in either of such sub-categones may be allocated to applicants in the other subcategory of Non-lnstitutional Bidders and not less than 35% of the NET Issue shall be available for allocation to Retail Individual Bidders ("RIBS') in accordance with the SEBI ICDR Regulations subject to valid Bids being received at or above the Issue Prioe. All Potential Bidders, other than Anchor Investors, are required to participate in the Issue by mandatory utilising the Application Supported by Blocked Amount ("ASBA) process by providing details of their respective ASBA Account (as defined hereinafter) and UPI ID in case of UPI Bidders using the UPI Mechanism, as applicable, pursuant to which their corresponding Bid Amounts will be blocked by the Self Certified Syndicate Banks ('SCSBs') or by the Sponsor Banks under the UPI Mechanism, as the case may be, to the extent of respective Bid Amounts. Anchor Investors are not permitted to participate in the Issue through the ASBA process. For details, see 'Issue Procedure"on page 353 of the Prospectus

The bidding for Anchor Investor opened and closed on March 22. 2024. The Company received 3 applications from 3 Anchor Investors for 18.59.900 Equity Shares. The Anchor Investor Issue Price was finalized at 7210 per Equity Share. A total of 18,59,900Equity Shares were allocated under the Anchor Investor Portion aggregating to 739.05.79,000.

The Issue received 1293523 applications for 378532700 Equity Shares resulting in 61.05 times subscription as disposed in the Prospectus. The details of the applications received in

the Issue from Retail Individual Bidders. Non-lnstitutional Bidders and QIBs are as under (before technical rejections):

Final Demand

A summary of the final demand as per NSE and BSE as on the Bid/lssue Closing Date at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE on April 01.2024.

A. Allotment to Retail Individual Bidders (After Technical Rejections) (including ASB A Applications)

The Basis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs.210 per Equity, was finalized in consultation with NSE. This category has been subscribed to the extent of 45.86 limes. The total number of Equity Shares Allotted m Retail Individual Bidders category is 2170000 Equity Shares to 31000 successful applicants. The category-wise details of the Basis of Allotment are as under:

B. Allotment to Non-lnstitutional Bidders (more than Rs.0.20 million and upto Rs.1.00 million) (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-ln$titu1ional Bidders (more than Rs. 0.20 million and upto Rs.1 million), who have bid at the Issue Price of Rs. 210 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 202.66 times. The total number of Equity Shares allotted in this category is 310000 Equity Shares to 316 successful applicants. The category-wise details of the Basis of Allotment are as under: (Sampte)

C. Allotment to Non-lnstitutional Bidders (more than Rs.1.00 million) (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-lnstitutional Bidders (more than Rs.1 million), who have bid at the Issue Price of Rs.210 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 220.69 times. The total number of Equity Shares allotted in this category is 620000 Equity' Shares to 632 successful applicants. The category-wise details of the Basis of Allotment are as under: (Sample)

D. Allotment to QIBs (After Technical Rejections)

Allotment to QIBs. who have bid at the Issue Price of Rs.210 per Equity Share or above, has been done on a proportionate basis in consultation with NSE. This category has been subscribed to the extent of 58.27 times of Net QIB portion. As per the SEBI Regulations, Mutual Funds were allotted 5% of the Equity Shares of Net QIB portion available i.e. Nil Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i.e. Nil Equity Shares on a proportionate basis. The total number of Equity Shares allotted in the QIB category is 1240100 Equity Shares, which were allotted to 43 successful Applicants.

E. Allotment to Anchor Investors (After Technical Rejections)

The Company, in consultation with the BRLM, have allocated 1859900 Equity Shares to 3 Anchor Investors (through 3 Anchor Investor Application Forms) (including Nil domestic Mutual Funds through N:i schemes) at an Anchor Issue Price at Rs.210 per Equity Share in accordance with SEBI ICDR Regulations. This represents 60% of the QIB portion.

The Board of Directors of our Company at its meeting held on April 01,2024 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful applicants. The Allotment Advice Cum Refund Intimation and/or notices have been dispatched to the address of the investors as registered with the depositories Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Issue Account on April 02,2024 and the payments to non-syndicate brokers have been issued on April 02.2024. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below The Equity Shares allotted to the successful allottees have been uploaded on April 02,2024 for credit into the respective benefiaary accounts subject to validation of the account details with the depositones concerned. The Company has filed the Listing application with BSE and NSE on April 02.2024. The Company has received the listing and trading approval from BSE & NSE. and trading will commence on April 03,2024

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

INVESTORS PLEASE NOTE

These details of the Allotment made was hosted on the website of Registrar to the Issue, Bigshare Services Private Limited at www.bigshareonline.com.

All future correspondence in this regard may kindfy be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, Serial number of the Bid cum Application form number, Bidders DP ID, Client ID. PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

	Bigshare Services Private Limited
	Office No. S6-2,6th Floor. Pinnacle Business Park. Next to Ahura Center. Mahakali Caves Road, Andheri East. Mumbai-400093
	Tel: +91 22-6263 8200; Contact Person: Babu Rapbeal C., Website: www.bigshareonline.com; E-mail: ipo@bigshareonline.com
	SEBI Registration No.: INR000001385; Investor Grievance E-mail: investor@bigshareonline.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF SRM CONTRACTORS LIMITED.

SRM CONTRACTORS LIMITED has filed a Prospectus dated March 29.2024 with the RcC. The Prospectus is made available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLM i.e.. Interactive Financial Services Limited at www.ifinservices.in. the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.srmcpi.com Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled "Risk Factors" beginning on page 31 of the Prospectus. Potential investors should not rely on the DRHP for making any investment decision but can only rely on the information included in the Red Herring Prospectus,

The Equity Shares offered in the Issue have not been and will not be registered under the U S. Securities Act of 1933. as amended ("U.S. Securities Act"). or any state law of the United States and. unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to. the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in 'offshore transactions' as defined in and in compliance with Regulation S under the U S. Securities Act and the applicable laws of the jurisdiction where those offers and sales are made. There will be no public offering of the Equity Shares in the United States.