Garuda Construction IPO Day 2: GMP shows slight uptick; Should you invest?

Garuda Construction IPO subscription details: The initial public offering (IPO) of Garuda Construction and Engineering, which opened for subscription yesterday, has so far received a decent response from investors. NSE data reveals that the public issue has received bids for 5,34,87,702 shares, against 1,99,04,862 shares offered via IPO, resulting in an oversubscription of 2.69 times till around 10:48 am on Wednesday, October 9, 2024.

Retail Individual Investors (RIIs) have placed the highest bid at 4.80 times, followed by Non-Institutional Investors at 1.59 times. Meanwhile, the quota reserved for Qualified Institutional Buyers (QIBs) has received a subscription of 0.02 times so far.

Garuda Construction comprises a fresh issue of 18,300,000 shares and an offer for sale of 9,500,000 shares with a face value of Rs 5 apiece. The public issue is available at a price band of Rs 92-95, and a lot size of 157 shares. Investors can bid for a minimum of 157 shares and in multiples thereof.

Meanwhile, unlisted shares of Garuda Construction are trading at a premium of Rs 5, or 5.26 per cent, over the upper end of the issue price in the grey market, according to sources tracking grey market activities.

Garuda Construction has also succeeded in garnering reviews from several brokerages including Anand Rathi Research. READ MORE

The three-day subscription window to bid for the Garuda Construction IPO will conclude on Thursday, October 10, 2024.

The basis of allotment of Garuda Construction IPO shares is expected to be finalized on Friday, October 11, 2024, and subsequently, the company’s shares will be credited into demat accounts on Monday, October 14, 2024.

The company proposes to utilise the net proceeds from the IPO for funding working capital requirements, general corporate expenses, and potential inorganic acquisitions.

Link Intime India is the registrar for the Garuda Construction IPO, while Corpwis Advisors serves as the sole book-running lead manager.

Garuda Construction and Engineering is a leading Indian infrastructure development company specialising in construction, engineering, and procurement services. With a strong presence across various sectors, including transportation, energy, and industrial projects, the company delivers innovative solutions and quality projects.