Garuda Construction and Engineering Limited had a successful stock market debut today, listing at ₹105 on the National Stock Exchange (NSE), which represents a 9.5% premium over its initial public offering (IPO) price of ₹95. On the Bombay Stock Exchange (BSE), the stock opened at ₹103.20, reflecting an 8.63% increase. The IPO, which raised ₹264.10 crore, was open for subscription from October 8 to 10, 2024, and saw overwhelming demand, with an overall subscription rate of 7.55 times.
Retail investors played a significant role, with their segment being oversubscribed 10.81 times, while the non-institutional investors’ quota was subscribed 9.03 times. The qualified institutional buyers (QIB) portion saw moderate interest at 1.24 times. The IPO consisted of both fresh issuance and an offer for sale (OFS), with fresh shares accounting for ₹173.85 crore and the OFS component raising ₹90.25 crore.
Shivani Nyati from Swastika Investmart noted that despite pre-listing expectations of a flat or negative listing, Garuda’s strong order book and diversified project portfolio contributed to its positive market debut. Investors are advised to monitor the company’s performance closely, holding shares with a stop-loss around the issue price to protect gains.
Founded in 2010, Garuda Construction and Engineering offers a range of services, including residential, commercial, and industrial project construction, alongside operation and maintenance services. Despite a reported decline in revenue and profit for FY24, the company’s fundamentals and expansion plans present a promising outlook for future growth.
Disclaimer: This response is for informational purposes only and should not be construed as financial or investment advice. The performance of Garuda Construction and Engineering Limited’s stock may vary, and past performance is not indicative of future results. Investors should conduct their research and consider their financial situation and risk tolerance before making any investment decisions. Please consult with a qualified financial advisor for personalized advice.
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