Garuda Construction IPO Update Today: Grey Market Premium at ₹5, What It Means for Investors
The Garuda Construction and Engineering IPO has attracted significant attention since its launch on October 8, 2024. As of today, October 10, the IPO has been fully subscribed, showcasing strong investor interest. The price band for this initial public offering is set between ₹92 to ₹95 per share, with a total issue size of ₹264.1 crore.
Main Points
Subscription Status
As of the latest updates, the Garuda Construction IPO has received a robust response from investors. The subscription figures indicate that the IPO has been oversubscribed by 4.1 times, with bids for approximately 8.16 million shares against the 1.99 million shares on offer.
- Retail Individual Investors (RIIs) have shown remarkable interest, subscribing 6.73 times their allotted quota.
- The portion reserved for Non-Institutional Investors (NIIs) was subscribed 2.58 times.
- Meanwhile, the Qualified Institutional Buyers (QIBs) segment saw a subscription of about 91%.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Garuda Construction shares has fluctuated during the subscription period. Initially, the GMP was noted at ₹5 on the first day of bidding but has since adjusted to zero, indicating no expected listing gains at this time. This reflects a cautious sentiment among investors regarding potential returns from the IPO.
Key Dates
- IPO Opening Date: October 8, 2024
- IPO Closing Date: October 10, 2024
- Allotment Date: Expected on October 11, 2024
- Listing Date: Scheduled for October 15, 2024.
Financial Performance
Garuda Construction has demonstrated impressive financial growth in recent years. The company’s revenue rose from ₹77.02 crore in FY22 to ₹154.18 crore in FY24, marking a compound annual growth rate (CAGR) of 26%. Additionally, profit after tax surged from ₹18.78 crore to ₹36.43 crore in the same period.
Use of Proceeds
The funds raised through this IPO will primarily be allocated for:
- Working capital requirements
- General corporate purposes
- Potential inorganic acquisitions.
Analyst Recommendations
Brokerages have generally recommended a “subscribe” rating for the Garuda Construction IPO based on its financial health and growth prospects. Anand Rathi Research noted that at the upper price band, the company is valued at a P/E ratio of 24.28, which they consider reasonable given its growth trajectory. Other analysts echoed similar sentiments, emphasizing the company’s strong order book worth ₹1,408 crore and its commitment to sustainability and innovation in construction practices.
Company Overview
Garuda Construction and Engineering is based in Mumbai and specializes in civil construction across various sectors including residential, commercial, and infrastructure projects. With a dedicated team of engineers and project managers, the company ensures high-quality standards throughout its project lifecycle.
