The initial public offering (IPO) of Garuda Construction and Engineering saw strong demand on its first day, with subscriptions reaching 1.91 times the total offer size on Tuesday.
The IPO garnered bids for 38,015,666 shares, exceeding the 19,904,862 shares available, as reported by the NSE. The retail individual investors (RIIs) segment was particularly popular, being subscribed 3.43 times, while non-institutional investors saw a subscription rate of 1.10 times. However, the qualified institutional buyers (QIBs) category received only 2% of its allotted shares.
Garuda Construction and Engineering Ltd announced it had raised ₹75 crore from anchor investors prior to the IPO. The company set a price band of ₹92-95 per share for its total ₹264-crore initial public offering, which will close on October 10.
The IPO consists of a fresh issue of 18.3 million equity shares along with an offer for sale (OFS) of 9.5 million equity shares by promoter PKH Ventures. At the upper end of the price band, the total IPO size is ₹264 crore.
Proceeds from the fresh issuance will be utilized primarily for working capital needs, with the remainder allocated for general corporate purposes, including potential acquisitions.
Based in Mumbai, Garuda Construction is currently working on six residential projects, two commercial projects, one industrial project, and one infrastructure project, with an order book totaling ₹1,408.27 crore.
Financially, the company has shown significant growth, with revenue from operations increasing from ₹77.02 crore in FY22 to ₹154.18 crore in FY24, reflecting a compound annual growth rate (CAGR) of 26%. Profit after tax also rose from ₹18.78 crore in FY22 to ₹36.43 crore in FY24, growing at a CAGR of 25%.
Corpwis Advisors is serving as the sole book-running lead manager, while Link Intime India is the registrar for the issue. The company’s shares are set to be listed on both the BSE and NSE.
