Garuda Construction IPO ends today: GMP falls flat; should you bid?

The three-day subscription window to bid for the Garuda Construction IPO, which has been oversubscribed 4.10 times, concludes today

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 via IPO, resulting in an oversubscription of 4.10 times by the end of the second day of subscription, according to NSE data.

Garuda Construction’s IPO received the highest demand from Retail Individual Investors (RIIs), who subscribed for 6.73 times the allotted shares, followed by Non-Institutional Investors at 2.58 times, and Qualified Institutional Buyers (QIBs) at 0.91 times.

Meanwhile, unlisted shares of Garuda Construction are trading flat in the grey market, reveals a source tracking grey market activities. Earlier, on Tuesday, October 8, Garuda Construction’s IPO grey market premium (GMP) was recorded at Rs 5, or 5.26 per cent, against the upper end of the IPO price of Rs 95.

That said, Garuda Construction has received reviews from several brokerages, including Anand Rathi Research, Arihant Capital Markets, and SMIFS. READ MORE

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, with a face value of Rs 5 apiece. The Garuda Construction IPO is available at a price band of Rs 92-95, and a lot size of 157 shares. Accordingly, investors can bid for a minimum of 157 shares and in multiples thereof. The company plans 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. 

For the Garuda Construction IPO, the basis of allotment of shares is likely to be finalised on Friday, October 11, 2024. Subsequently, the shares will be credited into demat accounts on Monday, October 14, 2024.

Tentatively, Garuda Construction shares may list 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, having 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 26 per cent Compound Annual Growth Rate (CAGR). Profit after tax also surged from Rs 18.78 crore to Rs 36.43 crore during the same period, posting a 25 per cent CAGR.