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Garuda Construction IPO: The three-day subscription window to bid for the initial public offering (IPO) of Garuda Construction and Engineering ends today. The public issue has so far received a decent response from investors, with bids for 8,16,77,366 shares against the 1,99,04,862 shares offered through the IPO, resulting in an oversubscription of 4.10 times at the end of the second day of subscription. , according to NSE data.
The Garuda Construction IPO received the highest demand from retail investors (RIIs), who subscribed for 6.73 times the allocated shares, followed by non-institutional investors with 2.58 times and institutional buyers qualified (QIB) with 0.91 times.
Meanwhile, unlisted shares of Garuda Construction are trading flat on the gray market, reveals a source that tracks gray market activities. Earlier, on Tuesday, October 8, the gray market IPO premium (GMP) of Garuda Construction was recorded at Rs 5, or 5.26 percent, against the upper end of the IPO price in scholarship of Rs 95.
The public issue of Garuda Construction consists of a fresh issue of 18,300,000 shares and an offer for sale of 9,500,000 shares, of a face value of Rs 5 each. The Garuda Construction IPO is available at a price band of Rs 92-95 and for a lot of 157 shares. Thus, investors can offer a minimum of 157 shares and multiples thereof. The company plans to use the net proceeds from the IPO to fund its working capital requirements, overhead costs and possible inorganic acquisitions.
Link Intime India is the IPO registrar for Garuda Construction, while Corpwis Advisors is solely responsible for bookkeeping.
For the IPO of Garuda Construction, the basis for allotment of shares is expected to be finalized on Friday, October 11, 2024. Thereafter, the shares will be credited to demat accounts on Monday, October 14, 2024.
Tentatively, shares of Garuda Construction may be listed on the BSE and NSE on Tuesday, October 15, 2024.
Garuda Construction, a Mumbai-based civil construction company, is currently engaged in civil construction of six residential projects, two commercial projects, one industrial project and one infrastructure, with an order book of Rs 1,408.27 crore. Garuda Construction’s revenue grew from Rs 77.02 crore in FY22 to Rs 154.18 crore in FY24, representing a compound annual growth rate (CAGR) of 26%. Profit after tax also increased from Rs 18.78 crore to Rs 36.43 crore during the same period, showing a CAGR of 25 per cent.
First publication: October 10, 2024 | 9:49 a.m. STI