SRM Contractors share price hits 5% upper circuit after muted listing; What should investors do?

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₹225 apiece, a premium of 7.14% to the issue price of ₹210 per share, on the BSE. The stock began trading with a 2.5% premium at ₹215.25 per share on NSE. Soon after the listing, SRM Contractors share price was locked at 5% upper circuit at ₹236.20 apiece on the BSE.

At this price, the stock was up by 12.48% from its IPO price. On NSE, SRM Contractors shares were 5% higher at ₹226.00 apiece. Read here: SRM Contractors share price makes a lukewarm debut, stock opens with a mere 2.5% premium at ₹215.25 on NSE SRM Contractors IPO listing price fell significantly short of expectations as the GMP today, or grey market premium today, was 42% earlier.

SRM Contractors IPO also received a strong overall subscription of 86.57 times and this also added to the surprise of the flat listing, as per analysts. Investors in SRM Contractors IPO are now wondering whether they should hold the stock after listing or sell and book profits. “Despite the strong subscription, some investors might have found the valuation at listing less attractive.

Also, broader market conditions might have impacted investor sentiment and tempered listing gains," said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd. Nyati believes SRM Contractors’ flat listing, while not what pre-listing indicators suggested, doesn’t necessarily negate its future potential. “The company’s strong regional presence, in-house capabilities, and healthy order book remain positive points.

However, a cautious approach is advisable," she added. The Initial Public Offering (IPO) of SRM Contractors opened for subscription on March 26 and ended on March 28. The IPO allotment was finalized on April 1 and the shares were listed on April 3.