The Initial Public Offering of Garuda Construction and Engineering Limited was subscribed 1.91 times after receiving an overwhelming response from all the categories of investors on the first day of bidding.
The issue received bids of 3,80,15,666 shares against the offered 1,99,04,862 equity shares, at a price band of ₹90-95, according to the data available on the stock exchanges.
Retail Portion and Non-Institutional Investors Portion were subscribed 3.43 times and 1.10 times respectively, whereas Qualified Institutional Buyer Portion was subscribed 0.02 times. The issue kicked off for subscription on Tuesday, October 08, 2024, and will close on Thursday, October 10, 2024.
A day before the opening of the issue, Garuda Construction and Engineering Ltd raised Rs 75 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were AG Dynamic Funds Trust Mutual Fund, Maybank Securities, North Star Opportunities Fund, Resonance Opportunities Fund, Bridge India Fund, and Cognizant Capital Dynamic Opportunities Fund.
Leading brokerage firms like Arihant Capital, BP Wealth, Stoxbox, and Swastika Investmart, have given a “Subscribe” rating to the issue highlighting the company’s solid track record of successfully completing various types of construction projects, such as residential, commercial, and hospitality buildings. The construction sector plays a big role in India’s economy. The average debt-to-equity ratio of other companies in the industry ranged between 0.23x and 0.66x during FY19-FY23, but in FY23, company has reduced its debt & is debt-free. With an order book worth Rs. 1,408 crores, which is 9.2 times its sales, and an IPO priced at a reasonable Price-to-Earnings (P/E) ratio of 19.5x based on FY24 earnings. The sector is expected to continue growing, reaching Rs. 6,49,400 crores by FY30, with a yearly growth rate of 7.5%.
Corpwis Advisors Private Limited is the sole book running lead manager, and Link Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on BSE and NSE.