The Garuda Construction and Engineering recorded a 7.55 times subscription over three days
Shares of Garuda Construction and Engineering were off to a decent start on its stock market debut on October 15 after listing at Rs 105, a premium of 10.5 percent from the issue price of Rs 95 per share on the BSE.
The listing gains, however, top grey market estimates where shares were trading without a premium. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
The Rs 264-crore public issue of Garuda Construction and Engineering recorded a 7.55 times subscription on third and final day of bidding on October 10 with investors buying 15.03 crore equity shares against the offer size of 1.99 crore shares.
Retail and non-institutional investors remained at the leading position to boost the IPO subscription as their reserved portions were subscribed 10.81 times and 9.03 times, respectively. Qualified institutional buyers bid 1.24 times the allotted quota.
The company raised Rs 75 crore from institutional investors through its anchor book on October 7, ahead of its IPO launch. It aims to raise Rs 264.10 crore through the offering, priced between Rs 92 and Rs 95 per share. The IPO includes a fresh equity issuance of Rs 173.85 crore and an offer-for-sale of 95 lakh shares, valued at Rs 90.25 crore, by promoter PKH Ventures.
Garuda Construction and Engineering offers a wide range of construction services, covering residential, commercial, mixed-use, infrastructure, and industrial projects. In addition, it provides operation and maintenance (O&M), mechanical, electrical and plumbing (MEP) services, and finishing works. The company plans to use the funds raised to meet working capital requirements, general corporate expenses, and potential unidentified inorganic acquisitions.
- Current price: ₹112 (+7.3)
- Open: ₹105
- Issue price: ₹95
- High: ₹120.9
- Low: ₹100.3
- Working capital requirements
- General corporate expenses
- Current price: ₹116 (+10.4)
- Open: ₹105
- Issue price: ₹95
- High: ₹120.9
- Low: ₹100.3
- Traded volume (Lakhs): 181.61
- Traded value: ₹188.53 crore
- Total market capitalisation: ₹962.80 crore
| Particulars | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue | ₹77 crore | ₹160 crore | ₹154 crore |
| Net Profit | ₹18.7 crore | ₹40.7 crore | ₹36.4 crore |
The money raised from the fresh issuance of equity shares will be utilised for working capital requirements and to serve general corporate purposes.
| Category | Number of times subscription |
|---|---|
| Qualified Institutional Buyers (QIBs) | 1.24 |
| Non-institutional investors | 9.03 |
| Retail Individual Investors (RIIs) | 10.81 |
Garuda Construction IPO Listing Live Update at 8:37 am: Garuda Construction and Engineering shares will list on the National Stock Exchange (NSE) and the BSE on Tuesday, October 15, at 10 am.
The part reserved for retail investors fetched 10.81 times the subscription, while the non-institutional investors (NIIs) quota attracted 9.03 times the subscription. The category for qualified institutional buyers (QIBs) was booked 1.24 times.
The ₹264.1 crore IPO, with a price band of ₹92-₹95 per share, was a mix of a fresh issue of 1.83 crore shares and an offer for sale of 95 lakh shares by promoter PKH Ventures.