The Initial Public Offering (IPO) of Garuda Construction and Engineering is set to launch tomorrow, October 15. Investors are excited about this event, as the company’s shares are expected to perform well based on strong subscription numbers and positive Grey Market Premium (GMP) signals.
IPO Details
Garuda Construction and Engineering finalized its IPO allotment on Friday, October 11. Investors who received shares will see them in their demat accounts today, October 14. For those who did not get shares, the refund process will also be completed today.
The IPO received a warm welcome from investors, with significant participation across different categories. According to BSE data, the IPO subscription status stood at an impressive 7.55 times by the end of the bidding period. Retail investors were particularly interested, with their portion being oversubscribed by 10.81 times. Non-institutional investors (NIIs) also showed strong interest, with a subscription rate of 9.03 times. The portion reserved for qualified institutional buyers (QIBs) was subscribed 1.24 times. This reflects the growing demand for Garuda Construction’s shares.
Strong Investor Interest
The subscription numbers indicate a high level of interest from various investor groups. On the first day of bidding, the IPO was subscribed 1.91 times, and this increased to 4.10 times by the second day. The trend continued upward, culminating in the final subscription figure of 7.55 times. This is a positive sign for the company as it prepares for its market debut.
Pricing and Allotment
Garuda Construction set a price band of ₹92-95 per share for its IPO, which is part of a total offering worth ₹264 crore. The IPO opened on October 8 and closed on October 10.Half of the IPO’s total size was earmarked for Qualified Institutional Buyers (QIBs), while 35% was designated for retail investors and 15% was set aside for Non-Institutional Investors (NIIs). Investors could bid for a minimum of 157 shares, with further bids in multiples of 157 shares.
On October 7, the company announced that it raised ₹75 crore from anchor investors, providing additional support for the IPO. This fundraising is crucial as it reflects confidence in the company’s prospects.
The Grey Market Premium (GMP) is an important indicator for investors, as it reflects the expected listing price of shares compared to the IPO price. As of today, the GMP for Garuda Construction’s IPO is ₹0, indicating that shares are trading at their issue price of ₹95 without any premium or discount in the grey market. This is a significant drop from earlier sessions, where the GMP ranged from ₹0 to ₹22. A high GMP often suggests strong investor interest, while a low or zero GMP may indicate a more cautious market sentiment.
Investors are eagerly awaiting the opening price of Garuda Construction’s shares on the listing day. If the shares open at a price higher than the issue price, it would suggest a successful listing. However, it’s essential to remember that market conditions can change rapidly, and the stock’s performance may fluctuate in the early days of trading.
The IPO of Garuda Construction and Engineering presents a notable opportunity for investors looking to enter the stock market. With a strong subscription status and the backing of anchor investors, the outlook seems promising. However, potential investors should conduct thorough research, set realistic expectations, and be mindful of their risk tolerance before making any decisions. By keeping an eye on the GMP, subscription numbers, and overall market sentiment, investors can make informed choices regarding this IPO.
