Garuda Construction and Engineering's IPO has received overwhelming demand, being oversubscribed by 7.55 times by the close of the share sale. A total of 15.03 crore bids were placed against the 1.99 crore shares on offer, with Retail Individual Investors (RIIs) and non-institutional investors showing strong interest. The company raised INR 75 crore from anchor investors earlier this week, with a price band of INR 92-95 per share. The IPO size is estimated at INR 264 crore, with INR 100 crore earmarked for working capital. The Mumbai-based construction firm, with an order book of INR 1,408.27 crore, has seen consistent financial growth.
The IPO of Garuda Construction and Engineering was oversubscribed by 7.55 times by the close of the share sale on Thursday. According to data from the NSE, a total of 15,03,44,299 bids were placed for the 1,99,04,862 shares available. The portion reserved for Retail Individual Investors (RIIs) saw a 10.81 times subscription, while non-institutional investors subscribed 9.03 times over their allotted quota. The segment allocated for Qualified Institutional Buyers (QIBs) was subscribed 1.24 times.
Earlier this week, Garuda Construction and Engineering announced that it had secured INR 75 crore from anchor investors. The company set the price range for its IPO at INR 92-95 per share. The IPO consists of a fresh issue of 1.83 crore equity shares, along with an offer for sale (OFS) of 95 lakh equity shares by its promoter, PKH Ventures. The IPO size is estimated at INR 264 crore, based on the higher end of the price range. Out of the funds raised from the fresh issue, INR 100 crore will be allocated for working capital needs, with the remaining amount directed towards general corporate purposes, including potential unidentified inorganic acquisitions.
Garuda Construction, based in Mumbai, is currently involved in the civil construction of six residential projects, two commercial projects, one industrial project, and one infrastructure project. The company's order book stands at INR 1,408.27 crore. Financially, Garuda's revenue from operations grew from INR 77.02 crore in FY22 to INR 154.18 crore in FY24, reflecting a Compound Annual Growth Rate (CAGR) of 26 per cent. Meanwhile, its profit after tax increased from INR 18.78 crore in FY22 to INR 36.43 crore in FY24, growing at a CAGR of 25 per cent. Corpwis Advisors is serving as the sole book-running lead manager for the IPO, while Link Intime India has been appointed as the issue's registrar. The company's shares are set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The IPO of Garuda Construction and Engineering has demonstrated strong market interest, being oversubscribed by 7.55 times. The company successfully raised funds, with significant participation from retail and non-institutional investors. The proceeds will bolster working capital and support corporate initiatives, positioning Garuda for continued growth. The firm's impressive financial performance and robust order book underscore its potential, with shares set to list on both the BSE and NSE, marking a significant milestone for the company.
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