SRS IPO subscribed 0.54 times on day two

The initial public offering of Faridabad-based SRS Ltd. has subscribed 0.54 times on the second day of the issue.

The issue has received bids for more than 1.76 crore equity shares, compared to the issue size of 3.50 crore equity shares at 15.00 hrs IST on August 24, as per NSE website.
The issue price band is fixed at Rs.58-65 apiece. The issue, which constitutes 25.13 percent of the post-issue share capital, will close for subscription on August 26, 2011.
The company plans to raise Rs.227.50 crore through the issue at higher end of price band. It plans to utilize the IPO proceeds to expand all its four verticals, namely, cinema, food courts, retail stores and jewellery stores. Besides, an amount of Rs.101 crore would be invested for expansion of 51 screens, Rs.40 crore in three food courts and Rs.53 crore in 29 retail stores. In jewellery segment, it would add 17 stores involving an investment of Rs.16 crore.

ICRA has assigned an 'ICRA IPO Grade 3' rating to the offer, which indicates average fundamentals.
The company posted a net profit of Rs.40 crore on total revenues of Rs.2,042 crore for the fiscal year ended March 31 this year.
It is a diversified company having businesses like cinema exhibition, food and beverages, retail and manufacturing and jewellery retail.

Issue Subscription Detail / Current Bidding Status

	Number of Times Issue is Subscribed (BSE + NSE)
As on Date & Time	Qualified Institutional Buyers (QIBs)	Non Institutional Investors (NIIs)	Retail Individual Investors (RIIs)	Total
Shares Offered / Reserved	17,500,000	5,250,000	12,250,000	35,000,000
Day 1 - Aug 23, 2011 17:00 IST	0.4500	0.8500	0.0300	0.3600
Day 2 - Aug 24, 2011 17:00 IST	0.5500	1.6700	0.0600	0.5400