Garuda Construction and Engineering IPO subscribed 4.10 times on Day 2

10 Oct 2024 , 09:52 AM

Despite recent equities market volatility, Garuda Construction and Engineering’s Rs 264-crore initial public offering had a positive reaction from investors on the second day of bidding, October 9.

Investors purchased 8.16 crore equity shares on Wednesday, up 4.10 times the issue size of 1.99 crore shares, according to subscription statistics with the exchanges.

The Mumbai-based construction company plans to raise Rs 173.85 crore through a fresh issue of Rs 90.25 crore through an offer-for-sale of 95 lakh shares at the upper end of the price range of Rs 92-95 per share. Promoter PKH Ventures will sell shares in the offer-for-sale.

Retail investors maintained their lead, subscribing 6.73 times the limit set aside for them, followed by non-institutional investors, who purchased 2.58 times the authorised amount. The allowed quota of qualified institutional buyers is likewise approaching full subscription, with bids totalling 0.91 times their reserved portion.

The civil construction company plans to use the proceeds from the new issue primarily to meet its working capital requirements. The remaining IPO proceeds will be utilised to cover general company expenses and inorganic acquisitions.

For feedback and suggestions, write to us at [e-mail]