Garuda Construction IPO Subscription Details on Day 2, October 9, 2024

9 Oct 2024 , 12:18 PM

Garuda Construction and Engineering’s IPO launched on October 8, 2024, with strong interest from retail and non-institutional investors (NIIs), though participation from Qualified Institutional Buyers (QIBs) remains limited.

The company raised ₹75 Crore from anchor investors before the IPO opening and set a price band of ₹92-95 per share. The IPO, worth ₹264 Crore, will close on October 10, 2024.

The allocation of shares is split, with 50% for QIBs, 35% for retail investors, and 15% for NIIs. Investors can bid for a minimum of 157 shares and multiples thereof.

Garuda Construction offers a wide range of civil construction services for residential, commercial, and infrastructure projects, including offices, hotels, and industrial buildings.

The company’s revenue grew from ₹77.02 Crore in FY22 to ₹154.18 Crore in FY24, achieving a CAGR of 26%. Profit after tax increased from ₹18.78 Crore to ₹36.43 Crore in the same period, with a 25% CAGR.

As of the second day of subscription (October 9), the IPO was subscribed 3.00 times, with retail investors’ portion oversubscribed 5.37 times, NIIs by 1.78 times, and QIBs by 2%.

Proceeds from the IPO will be used for operational funding and potential acquisitions. Corpwis Advisors is the lead manager, and Link Intime India is the registrar.