Overview of Garuda Construction and Engineering IPO
Garuda Construction and Engineering is set to debut in the stock market with its initial public offering (IPO) opening for subscription on October 8, 2024, and closing on October 10, 2024. The IPO presentation highlights an opportunity for investors to partake in the growth journey of a notable player in the construction engineering sector.
Anchor Investor Participation
The company successfully raised ₹75 crore from anchor investors just a day prior to the subscription opening. An allocation of 78,95,138 equity shares was made at a price of ₹95 per share. This strong backing from both foreign and domestic institutional investors indicates a robust confidence in the company’s future prospects.
Key Investors
Some of the prominent institutional investors participating in this anchor offer include AG Dynamic Funds Limited, Trust Mutual Fund – Trust MF Flexi Cap Fund, Maybank Securities Pte Limited, and several others. Notably, Trust Mutual Fund received 10,52,685 equity shares, accounting for ₹10 crore and representing 13.33% of the total anchor book size.
IPO Structure and Financial Goals
The Garuda Construction and Engineering IPO consists of a fresh issuance of up to 18,300,000 equity shares and an offer for sale comprising up to 9,500,000 equity shares. The price range for the IPO has been set between ₹90 and ₹95 per equity share. This pricing translates to a potential capital raise of approximately ₹264.10 crore at the upper end of the price band, reflecting the company’s strong valuation and anticipated demand.
Investment Logistics
Investors looking to participate in the IPO can bid for a minimum of 157 equity shares, with subsequent bids required in multiples of 157 shares. The IPO will be undertaken through a book-building process, ensuring an organized allocation of shares among various investor categories.
Allocation Strategy
The allocation policy for the IPO is strategically crafted, allowing up to 50% of the offer to be reserved proportionately for qualified institutional buyers (QIBs), at least 15% for non-institutional bidders, and a minimum of 35% for retail individual bidders. This structured approach aims to ensure wide accessibility and fair distribution of the shares, catering to a diverse range of investors.
Final Thoughts
The Garuda Construction and Engineering IPO represents a unique investment opportunity in a promising sector. With significant anchor investor support, a well-defined price range, and a transparent allocation process, potential investors are encouraged to evaluate their participation in this IPO. Such offerings not only provide funding for the company’s future endeavors but also allow investors to be part of its growth and expansion within the competitive construction engineering landscape.
