Garuda Construction IPO Sees Strong Market Debut with Over 9% Premium

Garuda Construction and Engineering made a strong entry into the stock market today. On the National Stock Exchange (NSE), the company's shares were listed at Rs.105, which is 9.5% higher than its initial public offering (IPO) price of Rs.95. On the Bombay Stock Exchange (BSE), the shares were listed at Rs.103.20, marking an 8.63% increase from the issue price.

Details of the IPO

Garuda's IPO was valued at Rs.264.10 crore and was open for subscription from October 8 to October 10, 2024. The price range was set between Rs.90 and Rs.95 per share. The IPO saw a huge demand, with a subscription of 7.55 times the offered shares. Retail investors bid 10.81 times more than available, while Non-Institutional Investors (NIIs) subscribed 9.03 times, and Qualified Institutional Buyers (QIBs) subscribed 1.24 times.

Structure of the IPO

The Garuda Construction IPO was divided into two components:

• A fresh issuance of 1.83 crore shares, amounting to Rs.173.85 crore.
• An offer for sale of 0.95 crore shares, totaling Rs.90.25 crore.

Retail investors were able to purchase a minimum lot of 157 shares, requiring an investment of Rs.14,915. The funds raised from the IPO will be used to address working capital requirements, cover general corporate expenses, and support potential future acquisitions. Corpwis Advisors Private Limited served as the lead manager for the IPO, while Link Intime India Private Ltd acted as the registrar.

About Garuda Construction and Engineering

Garuda Construction and Engineering Limited was founded in 2010 and is known for offering a wide range of construction services, including residential, commercial, infrastructure, and industrial projects. The company also provides additional services such as operations and maintenance (O&M), mechanical, electrical, and plumbing (MEP), and finishing works. However, the company faced some financial challenges, as its revenue dropped by 4% and its profit after tax (PAT) decreased by 11% between the financial years 2023 and 2024.