Shares of Garuda Construction and Engineering Ltd. soared 15% to Rs 120.99 apiece on the NSE on Tuesday, hours after debuting on the bourse. The stock listed at Rs 105 apiece, a premium of 10.53% over the IPO price of Rs 95. The scrip debuted at Rs 103.2 on the BSE, representing a gain of 8.63%.
The Rs 264 crore-IPO, launched last week, was subscribed over 7.5 times. The allotment of shares was finalised on Oct. 11.
The maximum bids for the IPO were recorded in the retail segment, as retail individual investors subscribed 10.81 times their reserved portion. The quota for non-institutional investors was booked 9.03 times, and the portion for qualified institutional buyers was subscribed 1.24 times.
Garuda Construction's IPO comprised a fresh issue worth Rs 173.85 crore and an offer for sale component worth Rs 90.25 crore. Before launching the public issue, the company raised Rs 75 crore from anchor investors.
The company aims to use the fresh issue proceeds to the extent of Rs 100 crore, for working capital requirements. The remainder of the fundraise is to be used for general corporate purposes, including unidentified inorganic acquisitions, as per the draft documents.
On the financial front, Garuda Construction's net profit increased to Rs 36.4 crore in fiscal 2024 from Rs 18.8 crore in fiscal 2022, at a compounded annual growth rate of 25%. The revenue from operations during the same period climbed to Rs 154.2 crore from Rs 77 crore at a CAGR of 26%.
Ahead of the shares hitting the secondary market, Investor Gain reported that the GMP on the Garuda Construction IPO shares stood at zero. However, the GMP is not an official price quote for the stock and is based on speculation.
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