The initial public offering (IPO) of Garuda Construction and Engineering, which commenced for bidding on October 8, has garnered significant interest, achieving a subscription rate of over 1.91 times on its first day of trading. This level of enthusiasm marks a promising start for the company as it expands its capital base.
Based on stock exchange data, Garuda Construction and Engineering’s IPO attracted bids for 38,015,666 shares, surpassing the 19,904,862 equity shares that were available for purchase. The price range for this offering is set between ₹90 and ₹95. Notably, the retail portion of the offering was highly sought-after, being subscribed 3.43 times, while non-institutional investors contributed to a 1.10 times subscription rate.
Nevertheless, the response from qualified institutional buyers has been lackluster, with their portion subscribing at only 0.02 times. The subscription period is scheduled to close on Thursday, October 10, providing investors a limited opportunity to participate.
A day prior to the IPO’s opening, Garuda Construction and Engineering raised ₹75 crores from various anchor investors. Large-scale participation came from notable entities such as AG Dynamic Funds Trust Mutual Fund, Maybank Securities, North Star Opportunities Fund, Resonance Opportunities Fund, Bridge India Fund, and Cognizant Capital Dynamic Opportunities Fund. This demonstrates strong backing from both foreign and domestic institutional stakeholders, instilling further confidence in potential investors.
Garuda Construction and Engineering IPO GMP
Currently, the shares of Garuda Construction and Engineering are trading at a grey market premium (GMP) of ₹5, as reported by investorgain.com. This premium suggests an anticipated listing price of around ₹100, indicating a 5.26% increase over the upper limit of the IPO price.
The grey market premium reflects investors’ willingness to pay above the initial issue price, signifying positive sentiment towards the company’s prospects.
Garuda Construction and Engineering IPO Details
The Garuda Construction and Engineering IPO will include a fresh issue of up to 18.3 million equity shares alongside an offer for sale totaling 9.5 million equity shares. With the bidding set to conclude on October 10, interested investors still have time to approach this investment opportunity.
The price band for the IPO is defined between ₹90 and ₹95 per share, with the overall IPO expected to raise approximately ₹264.10 crores at the upper price level.
Investors can place bids for a minimum of 157 equity shares and in multiples of 157 shares thereafter. The IPO will follow a book-building process that allocates no more than 50% to qualified institutional buyers, at least 15% to non-institutional investors, and a minimum of 35% reserved for retail investors. This tiered distribution structure aims to encourage a diverse range of investors in this promising offering.
Corpwis Advisors Private Ltd is serving as the sole lead manager for the IPO, while Link Intime India Private Ltd holds the position of registrar for the process.
