The Garuda Construction IPO has garnered significant attention as it enters its final day for subscription today. Launched on October 8, 2024, this initial public offering is crucial for investors looking to capitalize on the growing infrastructure sector in India.
Strong Subscription Numbers
As of the latest reports, the Garuda Construction IPO has witnessed robust interest, with overall subscriptions reaching 4.10 times. The retail segment has shown remarkable enthusiasm, being subscribed 6.73 times, while the non-institutional investors (NII) segment stands at 2.58 times. However, the qualified institutional buyers (QIB) portion has not fared as well, only being subscribed 0.91 times.
Garuda Construction IPO GMP: Market Insights
The Garuda Construction IPO GMP (Grey Market Premium) has been a topic of concern among investors. The GMP has plummeted from ₹20 to ₹5 in just two days, indicating a 75% drop. This sharp decline raises questions about the future performance of the stock upon its listing. As of today, shares are available at a mere ₹5 premium, which could influence investor sentiment as they weigh their options.
Expert Opinions: Buy or Avoid?
Analysts are divided on whether the Garuda Construction IPO is worth subscribing to. Anshul Jain, Head of Research at Lakshishree Investment and Securities, remains optimistic, emphasizing the company’s strong financial growth. He pointed out that Garuda reported revenues soaring from ₹7,702.08 lakh in FY22 to ₹15,417.83 lakh in FY24, marking a solid CAGR of 26.03%. Jain recommends a “Subscribe” rating for the IPO, suggesting that it presents a compelling opportunity for listing gains.
Conversely, VLA Ambala, a SEBI-registered research analyst, advises caution. While acknowledging the company’s promising order book of ₹1,408 crores, Ambala expressed concerns regarding the timing of the IPO amid a sluggish market environment. He warned that investors might face challenges if they expect immediate gains from the listing.
Should You Buy the Garuda Construction IPO?
With the IPO closing today and allotment expected on October 11, 2024, investors must consider their risk appetite carefully. The anticipated listing date is set for October 15, 2024.
In summary, the Garuda Construction IPO presents both opportunities and risks. While the positive subscription numbers and growth metrics are encouraging, the declining GMP and current market conditions warrant a thorough evaluation. Investors are encouraged to weigh expert opinions and conduct their due diligence before making a decision on whether to buy shares of Garuda Construction.
Disclaimer
The views and recommendations provided in this article are those of individual analysts. They do not represent the views of Mint. Investors should consult with certified financial advisors before making investment decisions.
