Garuda Construction and Engineering launched its IPO for investors to bid on October 08. The company wants to raise a sum of Rs 264.10 crore from the initial capital market. According to the company, the raised funds will be utilised for the working capital requirements, other general corporate expenses, and unidentified inorganic acquisitions.

Garuda Construction IPO GMP

The company’s shares were having a lacklustre response in the grey market, attracting a mere 5% premium. This indicates that investors are not much interested in the stock. The grey market is an unofficial place to trade shares. 

Garuda Construction IPO Issue Size Details

The IPO closes on October 10. The IPO has a component of 18.3 million fresh shares and an offer-for-sale component of 9.5 million shares.

Garuda Construction IPO Price Band, Allotment, and Listing

The company’s IPO price band ranges between Rs 92 to Rs 95 per equity share. The allotment of shares will likely be finalised on October 11. The company’s listing on NSE and BSE is expected to be on October 15, as per the tentative schedule. 

Minimum Investment Required

A retail buyer needs to bid for at least one lot that contains 157 shares, amounting to Rs 14,915. There are different lot sizes for small and big NIIs that start from Rs 2,00,000 onwards. 

About Garuda Construction and Engineering

The company provides construction services for residential, commercial, infrastructure, and industrial projects. It also provides services for infrastructure and hospitality projects. Additionally, it provides services such as operation and maintenance (O&M) and mechanical, electrical and plumbing (MEP) services as well as finishing works as part of construction services.

Expert’s Take on Garuda Construction and Engineering

Tarun Singh, Founder and MD of Highbrow Securities said that this IPO deserves careful scrutiny due to its uneven financial track record and unimpressive past performance. The company’s finances have been marked by significant fluctuations, leading to average results. Moreover, its substantial unpaid customer invoices pose a significant cash flow risk, compounded by its group company PKH Ventures’ failed IPO attempt in July 2023. That offering’s withdrawal due to insufficient investor interest casts doubt on this current IPO’s legitimacy. This seems more than just a retry – it’s an adamant second bid for public listing, driven by determination rather than financial stability.

BRLM and Registrar

Corpwis Advisors is the sole lead book runner of the IPO and Link Intime India is the registrar.