Tue Oct 08 06:31:51 UTC 2024: ## Garuda Construction and Engineering IPO Opens with Strong Demand

**Mumbai, India – October 8, 2024** – The initial public offering (IPO) of Garuda Construction and Engineering Ltd. opened for subscription on Tuesday, with strong initial demand. The IPO, aiming to raise Rs 264 crore, has a price band of Rs 82 to Rs 95 per share.

Within the first 20 minutes of opening, the IPO received a 17% subscription, with bids for 33,44,257 shares against the 1,99,04,862 shares on offer. Retail individual investors (RIIs) showed strong interest, subscribing 30% of their allotted portion, while non-institutional investors subscribed 9%.

The IPO will remain open for subscription until October 10, with share allotment expected on October 11. The company’s shares will be listed on both BSE and NSE on October 15.

**Analysts’ Recommendations:**

Most brokerage firms have given a ‘subscribe’ recommendation for the IPO, citing the company’s strong order book, project diversification, and impressive growth in revenue and profits. While acknowledging the sluggish performance in FY24 due to the election year, analysts highlight the company’s debt-free status and the reasonable P/E ratio.

**Grey Market Premium:**

The grey market premium (GMP) for Garuda Construction shares is currently trading at Rs 5, indicating a potential 5.26% listing gain. The GMP, however, is subject to market sentiments and can fluctuate.

**Key Highlights:**

* The IPO includes a fresh issue of 1.83 crore equity shares and an offer for sale (OFS) of 95 lakh equity shares by promoter PKH Ventures.
* Proceeds from the fresh issue will be used for working capital requirements and general corporate purposes, including potential acquisitions.
* The Mumbai-based company currently has an order book of Rs 1,408.27 crore, with projects spanning residential, commercial, industrial, and infrastructure sectors.
* Garuda Construction has witnessed significant revenue and profit growth in recent years, with a CAGR of 26% and 25%, respectively.

Overall, the IPO of Garuda Construction and Engineering has opened with strong initial demand, attracting positive recommendations from analysts. The company’s financial performance, project portfolio, and debt-free status suggest potential for long-term growth, making it an attractive option for investors.

Read More