Garuda Construction and Engineering IPO bought 7.55 times on final day; check GMP, allotment & listing dates

Garuda Construction and Engineering IPO

The Rs 264-crore public issue of Garuda Construction and Engineering has recorded a 7.55 times subscription on third and final day of bidding on October 10 with investors buying 15.03 crore equity shares against the offer size of 1.99 crore shares.

The IPO is a combination of fresh issuance of equity shares worth Rs 173.85 crore, and an offer-for-sale of 95 lakh shares worth Rs 90.25 crore at the upper price band. Promoter PKH Ventures is offloading shares in the offer-for-sale.

The price band for the issue was Rs 92-95 per share.

Retail as well as non-institutional investors remained at the leading position to boost the IPO subscription as their reserved portions were subscribed 10.81 times and 9.03 times, respectively. Qualified institutional buyers bid 1.24 times the allotted quota.

Also read: Biggest IPOs of India: Did they help investors make money?

The civil construction company had raised Rs 75 crore out of the total issue size via anchor book on October 7. It has allotted 78.95 lakh equity shares to seven institutional investors - AG Dynamic Funds, Trust Mutual Fund, Maybank Securities, North Star Opportunities Fund, Resonance Opportunities Fund, Bridge India Fund, and Cognizant Capital Dynamic Opportunities Fund - at a price of Rs 95 per share.

Out of the net fresh issue proceeds, Rs 100 crore will be utilised for working capital requirement, and the remaining funds for general corporate purposes.

Garuda Construction provides civil construction for residential, commercial, infrastructure, industrial, and hospitality projects. Its order book comprised of 12 ongoing projects are valued at Rs 1,408.3 crore, of which seven projects are having a contract value of more than Rs 100 crore each.

Also read: Hyundai Motor India IPO GMP crashes 75% in 2 weeks as automaker announces details of mega public issue

The company will finalise the basis of allotment of IPO shares by October 11, and will credit equity shares to the demat accounts of successful investors by October 14.

Investors can start trading in Garuda Construction shares effective October 15. Ahead of its debut, the IPO shares were available at around 5 percent premium over the upper price band in the grey market, the market observers said. The grey market is an unofficial market wherein shares can be bought and sold till the listing.

Corpwis Advisors is acting as the merchant banker to the issue, while Link Intime India is the registrar to the offer.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.