Garuda Construction and Engineering’s initial public offering was fully subscribed 1.91 times on the first day on Tuesday.
The initial share sale saw bids of 3,80,15,666 shares against 1,99,04,862 shares offered, according to data available with the NSE.
The portion meant for Retail Investors (RIIs) subscribed 3.43 times while the share of non-institutional investors received 1.10 times subscription. The Qualified Institutional Buyers (QIBs) category attracted only 2 percent registrations.
Garuda Construction and Engineering Ltd on Monday said it has raised Rs 75 crore from investors.
The company has set a price band of Rs 92-95 per share for its Rs 264-crore initial public offering.
The sale of the first shares will end on October 10.
The IPO is a mix of fresh issue of 1.83 million equity shares and an offer for sale (OFS) of 95 lakh equity shares by promoter PKH Ventures.
The size of the IPO is pegged at Rs 264 crore at the higher end of the price band.
The proceeds from its fresh issue of up to Rs 100 crore will be used for working capital requirements; and the balance towards general business objectives including unknown inorganic acquisitions.
Mumbai-based Garuda Construction is currently involved in the civil construction of six residential projects, two commercial projects, one industrial project and one infrastructure project, with an order book of Rs 1,408.27 crore.
On the financial side, the company’s income from operations increased from Rs 77.02 crore in FY22 to Rs 154.18 crore in FY24, registering a Compound Annual Growth Rate (CAGR) of 26 percent. Profit after tax increased from Rs 18.78 crore in FY22 to Rs 36.43 crore in FY24, growing at a CAGR of 25 percent.
Corpwis Advisors is the only book holding the lead manager and Link Intime India is the underwriter of the issue.
The company’s shares are proposed to be listed on the BSE and the National Stock Exchange (NSE).