Garuda Construction And Engineering IPO Subscribed 0.97 Times So Far On Day 1

The initial public offering of Garuda Construction And Engineering Ltd. opened for subscription on Tuesday. It was subscribed 0.97 times, or 97%, as of 12:18 p.m.

The retail investor portion has been subscribed 1.79 times.

The civil construction company is looking to raise up to Rs 264.1 crore, of which Rs 173.85 crore will be a fresh issue and Rs 90.25 crore will be given up as offer for sale.

Ahead of the IPO, Garuda Construction raised Rs 75 crore from anchor investors. The board finalised allocation of 78.95 lakh shares at a price of Rs 95 apiece and maximum shares in the anchor book round were bagged by AG Dynamic Funds Ltd.

The three-day subscription window for Garuda Construction's IPO will close on Thursday and it will list on the BSE and the National Stock Exchange.

• Issue opens: Oct. 8.

• Issue closes: Oct. 10.

• Issue price: Rs 92 to Rs 95 per share.

• Fresh issue: Rs 173.85 crore.

• Offer for sale: Rs 90.25 crore.

• Total issue size: Rs 264 crore.

• Bid lot: 157 shares.

• Listing: BSE and NSE. 

Garuda Construction And Engineering is a Mumbai-based Engineering, Procurement, and Construction company.

According to the DRHP, the company reported a growth in revenue from operations of Rs 154.17 crore in fiscal 2024, Rs 160.6 crore in fiscal 2023 and Rs 77 crore in fiscal 2022.

As part of its business, it provides end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects.

The company proposes to utilise the funds which are being raised towards funding working capital requirements and general corporate expenses and unidentified inorganic acquisitions, according to the DRHP.

Of the funds raised, Rs 100 crore will go towards working capital requirements.

The IPO has been subscribed 0.97 times, or 97%, as of 12:18 p.m.

• Qualified institutional buyers: Nil.

• Non-institutional investors: 0.46 times, or 46%.

• Retail investors: 1.79 times.

The grey market premium of Garuda Construction And Engineering was Rs 5 as of 8:56 a.m., implying a 5.26% gain over the IPO price, according to Chittorgarh's unit InvestorGain. The estimated listing price based on the GMP is Rs 100 per share. 

GMP is not an official price quote for the stock and is based on speculation. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.