The initial public offering (IPO) of Garuda Construction and Engineering is making headlines as it attracts a lot of attention from investors. The IPO, which started on October 8, 2024, has shown impressive demand, especially from retail investors. Here’s what you need to know about this IPO and its current status.
Subscription Status
As of the end of the second day of the subscription period, the Garuda Construction IPO has been subscribed 3 times. This means that investors have bid for three times the number of shares available. The strong demand is a positive sign for the company, indicating that many people believe in its future growth.
The portion of shares available for retail investors has been oversubscribed 5.37 times, showing that individual investors are eager to buy shares in Garuda Construction. Meanwhile, the quota for non-institutional investors has received bids for 1.78 times the number of shares available. However, the Qualified Institutional Buyers (QIBs) segment is less enthusiastic so far, with only 2% of the shares being subscribed. On the first day of the subscription, the IPO was 1.91 times subscribed, indicating strong interest right from the start.
IPO Details
Garuda Construction and Engineering’s IPO consists of 1.83 crore new equity shares and an offer for sale (OFS) of 95 lakh equity shares from the promoter, PKH Ventures Ltd. The company has established a price range of ₹92 to ₹95 per share for its total offering, which amounts to ₹264 crore. The funds raised from this IPO will be used to meet the company’s operational needs and to support its general business activities, including possible acquisitions.
The grey market premium (GMP) for the Garuda Construction IPO is currently at ₹5. This indicates that investors are willing to pay ₹5 more than the IPO price in the grey market. The estimated listing price for Garuda shares is expected to be around ₹100 per share, which is approximately 5.26% higher than the upper end of the IPO price band of ₹95. However, it’s important to note that the GMP has shown some signs of decline recently. In the past nine sessions, the GMP has ranged from a low of ₹0 to a high of ₹22, indicating fluctuations in investor sentiment.
The strong subscription numbers and rising GMP suggest a positive market sentiment toward Garuda Construction and Engineering. However, potential investors should consider a few key factors before making their investment decisions. First, look into Garuda’s financial performance, growth potential, and competitive position within the construction industry. Next, consider the overall market conditions and future trends in the construction and engineering sector. It’s also important to evaluate whether the IPO pricing is fair compared to the company’s financial health and industry standards. Lastly, assess your own risk appetite and investment goals before investing in the IPO.
The IPO of Garuda Construction and Engineering has generated significant interest among investors, especially retail ones. With strong subscription levels and a rising grey market premium, it appears to be a promising investment opportunity. Nevertheless, it is essential to conduct thorough research and consult with a financial advisor to ensure that this IPO aligns with your financial goals and risk tolerance. Keep an eye on the subscription status as it continues through October 10, 2024.
