Wed Oct 09 01:06:44 UTC 2024: ## Garuda Construction IPO Sees Tepid Response on Opening Day

**New Delhi, October 8, 2024:** The much-anticipated IPO of Garuda Construction, a Rs 264 crore public issue, opened for bidding rounds on Tuesday, but has witnessed a subdued response so far. The company’s grey market premium (GMP), an indicator of expected listing gains, has fallen leading up to the IPO launch, currently standing at a mere Rs 5. This suggests that investors are showing cautious optimism towards the company’s prospects.

The initial subscription status reveals a mixed picture. While the retail quota was fully subscribed, the overall subscription level was slightly over half (67%) by 11:45 am, with Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) lagging behind.

**Listing Expectations:** Based on the current GMP and the upper price band of Rs 92-95 per share, Garuda Construction’s listing price is estimated at around Rs 100. This indicates potential listing gains of only 5%, a far cry from the high gains witnessed in some recent IPOs.

**Anchor Investor Interest:** Garuda Construction has already secured Rs 75 crore from anchor investors, including prominent names like AG Dynamic Funds, Trust Mutual Fund, and Maybank Securities Pte Ltd. This demonstrates some degree of confidence in the company’s future potential.

**Key IPO Details:** The retail investors are allotted 35% of the total issue size, while QIBs and NIIs have been allocated 50% and 15%, respectively. The minimum investment for retail investors is Rs 13,965, with a lot size of 157 shares.

The IPO allotment date is tentatively scheduled for October 11, 2024, with listing expected on October 15.

While the initial response to the IPO has been lukewarm, the coming days will be crucial in determining the final outcome of the public offering. The performance of the stock post-listing will also be closely watched by investors.

Read More