Shares of Garuda Construction and Engineering made a surprising Dalal Street debut on Tuesday. The construction company was listed at Rs 105 on NSE, at a premium of 10.53 per cent over its issue price of Rs 95. Similarly, the stock was listed with a premium of 8.63 per cent at Rs 103.20 on BSE, against the given issue price.
The listing of Garuda Construction and Engineering has been better than expectations. Ahead of their listing, shares of Garuda Construction were commanding no premium in the unofficial market, suggesting a negligible listing pop for the investors, but it managed to reward investors.
The IPO of Garuda Construction and Engineering was open for bidding between October 08 and October 10. The company had offered its shares in the fixed price band of Rs 90-95 per share with a lot size of 157 shares. It raised a total of Rs 264.10 crore from its IPO, which included a fresh share sale of Rs 173.85 crore and offer-for-sale (OFS) of up to 95 lakh shares.
The issue was overall subscribed only 7.55 times. The allocation for retail investors was booked 10.81 times, while the quota for non-institutional investors(NIIs) was subscribed 9.03 times. The portion reserved for qualified institutional bidders (QIBs) investors saw bidding for only 1.24 times during the three-day bidding process
Founded in 2010, Garuda Construction and Engineering provides comprehensive construction services for residential, commercial, residential/commercial, infrastructure, and industrial projects, as well as additional services for infrastructure and hospitality projects.
Brokerage firms had a positive view on the issue, suggesting to subscribe to it. Corpwis Advisors was the sole book running lead manager of the Garuda Construction and Engineering IPO, while Link Intime India served appointed as the registrar for the issue.