Garuda Construction and Engineering's Rs 264-crore initial public offering continued to receive good response from investors on the second day of bidding, October 9 despite the volatility in equity markets after recent turmoil.
Investors have bought 8.16 crore equity shares on Wednesday, higher by 4.10 times compared to the issue size of 1.99 crore shares, the subscription data with the exchanges showed.
The Mumbai-based construction company targets to mobilise Rs 173.85 crore through fresh issue, and Rs 90.25 crore via offer-for-sale of 95 lakh shares, at the upper end of price band of Rs 92-95 per share. Promoter PKH Ventures will be selling shares in the offer-for-sale.
Retail investors maintained their leading position, subscribing 6.73 times the portion set aside for them, followed by non-institutional investors who bought 2.58 times the allotted quota. The allotted quota of qualified institutional buyers is also near the full subscription mark as they bid 0.91 times their reserved portion.
However, its IPO shares seem to be finding tough to get good premium in the grey market, trading at around 0-5 percent over the upper price band which reduced from 7-15 percent earlier, the market observers said. The grey market is an unofficial market for trading in IPO shares till the listing and the participants generally look at the grey market to judge the expected listing price.
The civil construction company will utilise fresh issue proceeds mainly for its working capital requirements. The remaining IPO funds will be used for general corporate expenses and inorganic acquisitions.
Also read: IPO-bound Hyundai India paid Rs 10,780-crore special dividend in FY24
The public issue will close on October 10. Corpwis Advisors is the sole book running lead manager to the issue.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
