SRM Contractors board approved a qualified institutions placement of up to ₹150 crore and a preferential issue of fully convertible warrants to promoters on September 5, 2026.

The infrastructure firm also increased its authorized share capital from ₹25 crore to ₹35 crore. Shareholders will vote on these measures at the annual general meeting scheduled for September 30, 2026.

Capital Raise Details

The company plans to raise funds through two distinct instruments. The QIP involves issuing fully paid-up equity shares with a face value of ₹10 each. The total amount raised through this route will not exceed ₹150 crore. Pricing and allotment details remain subject to regulatory approvals and market conditions.

Simultaneously, the board approved the issuance of up to 19,34,236 fully convertible warrants to promoter group entities. These warrants are priced at ₹517 each, aggregating to approximately ₹100.00 crore.

The warrants are convertible into equity shares of face value ₹10 within 18 months of allotment. The proposed allottees are:

• Sanjay Mehta: 9,67,118 warrants
• Puneet Pal Singh: 9,67,118 warrants

Corporate Actions

To facilitate these issuances, SRM Contractors increased its authorized share capital by creating an additional 1,00,00,000 equity shares. This requires altering Clause V of the Memorandum of Association.

A fund-raising committee has been constituted to finalize documentation for both the QIP and the preferential issue. All actions are subject to member approval at the upcoming AGM.

SRM Contractors Limited confirmed the incorporation of its associate entity, Giraffe SRM Estates Private Limited, on August 24, 2026. The company received the Certificate of Incorporation from the Registrar of Companies (ROC), validating the special purpose vehicle approved by the board on August 20, 2026.

The listed infrastructure firm holds a 49% stake in the new entity. SRM Contractors contributed ₹49,000 towards the initial paid-up capital of ₹1,00,000. The remaining ₹51,000 is held by Giraffe. The entity was incorporated in India with an authorized capital of ₹10,00,000.

Strategic Expansion Details

Giraffe SRM Estates Private Limited will operate in the infrastructure and wayside amenities sector. The scope of operations includes:

• Development and operation of wayside amenities on highways and expressways
• Operation of parking, rest areas, retail, fuel, CNG, and EV charging facilities
• Establishment of restaurants, cafés, food courts, and catering outlets
• Execution of projects as an SPV under concession or PPP arrangements with NHAI, MoRTH, and other authorities

What the Numbers Show

The capital structure confirms a minority investment strategy for this diversification move. With SRM Contractors contributing 49% of the initial ₹1,00,000 capital, the company is structuring this entry as a joint venture or associate entity rather than a wholly-owned subsidiary. This approach allows for risk sharing while entering the highway hospitality segment, which often requires significant operational partnerships and regulatory concessions from government bodies like the National Highways Authority of India (NHAI).

No governmental or regulatory approvals are required specifically for the incorporation of the entity itself, as noted in the disclosure. The board meeting that approved the creation commenced at 1:00 pm and concluded at 2:00 pm on August 20, 2026.