The Initial Public Offering (IPO) of Garuda Construction and Engineering Limited on its first day of bidding or Day 1 was subscribed at a rate of 1.91 times. The subscription period began on October 8, 2024, and will conclude on October 10, 2024.
Bidding Details and Investor Interest
On the opening day of the IPO on Tuesday (October 8), investors placed bids for 3,80,15,666 shares, far exceeding the 1,99,04,862 equity shares available for subscription.
The price band for the shares of the public issue is set between Rs 90 to Rs 95.
Breakdown of Subscriptions
The Retail Investor portion of the IPO was subscribed by 3.43 times and the Non Institutional Investors (NII) was subscribed at a rate of 1.10 times. Similarly, the Qualified Institutional Buyers (QIB) portion saw a subscription rate of 0.02 times of the first day of bidding.
Garuda Construction Raises ₹75 Crores From Anchor Investors | Canva
Anchor Investors
Prior to the IPO launch, the company secured Rs 75 crores from several anchor investors, which include major players like AAG Dynamic Funds Limited, Trust Mutual Fund – Trust MF Flexi Cap Fund, Maybank Securities Pte Limited, North Star Opportunities Fund VCC, Resonance Opportunities Fund, Bridge India Fund, and Cognizant Capital Dynamic Opportunities Fund.
Financial Position
The company, as per reports, now stands in a debt-free status. It has a order book of Rs 1,408 crores, equating to 9.2 times its sales.
Furthermore, the IPO is priced at a reasonable Price-to-Earnings (P/E) ratio of 19.5x, based on FY24 earnings.
About the company
The company operates in the segment of civil construction services and caters to various projects, including Residential and Commercial, Infrastructure Projects, Industrial Projects, and Hospitality Projects.
