Garuda Construction IPO Surpasses Subscription Target, Attracts 1.91 Times Bids
Garuda Construction and Engineering's initial public offer (IPO) has been fully subscribed, with a 1.91 times oversubscription on the first day. The share sale received bids for 3,80,15,666 shares against 1,99,04,862 shares on offer.
Garuda Construction IpoStock MarketCivil ConstructionInitial Public OfferMumbaibased CompanyReal Estate MumbaiOct 09, 2024
The Retail Individual Investors (RIIs) portion of the IPO was oversubscribed 3.43 times, while the quota for non-institutional investors received 1.10 times subscription. However, the category for Qualified Institutional Buyers (QIBs) attracted a mere 2 per cent subscription.
Garuda Construction and Engineering Ltd. announced on Monday that it has raised Rs 75 crore from anchor investors. The company has fixed a price band of Rs 92-95 per share for its Rs 264-crore initial public offering. The IPO will conclude on October 10.
The IPO is a combination of a fresh issue of 1.83 crore equity shares and an offer for sale (OFS) of 95 lakh equity shares by promoter PKH Ventures. The IPO size has been pegged at Rs 264 crore at the upper end of the price band.
Proceeds from the fresh issuance, to the extent of Rs 100 crore, will be utilized for working capital requirements, and the balance will be directed towards general corporate purposes, including potential inorganic acquisitions.
The Mumbai-based Garuda Construction is currently engaged in civil construction projects, including six residential projects, two commercial projects, one industrial project, and one infrastructure project, with an order book of Rs 1,408.27 crore.
On the financial front, the company's revenue from operations has risen from Rs 77.02 crore in FY22 to Rs 154.18 crore in FY24, registering a Compound Annual Growth Rate (CAGR) of 26 per cent. Profit after tax increased from Rs 18.78 crore in FY22 to Rs 36.43 crore in FY24, growing at a CAGR of 25 per cent.
Corpwis Advisors is the sole book running lead manager, and Link Intime India is the registrar of the issue. The company's shares are proposed to be listed on both the BSE and National Stock Exchange (NSE).
Frequently Asked Questions
What is the subscription rate of Garuda Construction's IPO on the first day?
Garuda Construction and Engineering's IPO was fully subscribed with a 1.91 times oversubscription on the first day.
How many shares were bid for compared to the number of shares on offer?
The IPO received bids for 3,80,15,666 shares against 1,99,04,862 shares on offer.
What is the price band for Garuda Construction's IPO?
The price band for the IPO is Rs 92-95 per share.
What is the size of the IPO at the upper end of the price band?
The IPO size at the upper end of the price band is Rs 264 crore.
What are the primary uses of the proceeds from the IPO?
Proceeds from the fresh issuance to the extent of Rs 100 crore will be utilized for working capital requirements, and the balance will be directed towards general corporate purposes, including potential inorganic acquisitions.
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