Garuda Construction and Engineering IPO fully subscribed on day 1, check latest GMP

Garuda Construction and Engineering

The initial public offering of Garuda Construction and Engineering has received decent response on the first day of bidding itelf, getting fully subscribed on October 8.

The Mumbai-based EPC company targets to mobilise Rs 264.10 crore via public issue at the upper price band. 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 by the promoter PKH Ventures.

The price band for the issue, which closes on October 10, has been fixed at Rs 92-95 per share.

The public issue has seen a 1.91 times subscription so far on Tuesday as investors bought 3.8 crore equity shares against the offer size of 1.99 crore shares, the subscription data on the exchanges showed.

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Retail investors took the lead amongst the participants, bidding 3.43 times the allotted quota, followed by the non-institutional investors who subscribed 1.1 times the reserved portion. Qualified institutional buyers bid 0.02 times the portion set aside for them.

The construction company has already raised Rs 75 crore from seven anchor investors on October 7, including Trust Mutual Fund, Maybank Securities, AG Dynamic Funds, North Star Opportunities Fund, and Resonance Opportunities Fund.

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The net fresh issue proceeds will be utilised mainly for company's working capital requirements, and the remaining funds for general corporate purposes, while the offer-for-sale money will go to the promoter.

Garuda Construction provides civil construction services for residential, commercial, infrastructure, industrial, and hospitality projects.

Its IPO shares were available at around 5-10 percent premium over the upper price band in the grey market, the market observers said. The grey market is an unofficial platform wherein the IPO shares can be bought and sold till the listing.