Garuda Construction and Engineering's initial public offering (IPO) has attracted significant market interest, with the share sale being oversubscribed by 7.55 times on its final day. Retail investors led the charge, as the company raised Rs 75 crore from anchor investors earlier in the week. The IPO, priced between Rs 92 and Rs 95 per share, aims to raise Rs 264 crore, combining fresh share issuance and an offer for sale by PKH Ventures. The company plans to allocate proceeds primarily for working capital and potential acquisitions. With a strong growth trajectory in revenue and profit, Garuda is set to debut on the BSE and NSE, further solidifying its position in the construction sector.

IPO Receives Strong Demand

Garuda Construction and Engineering's IPO was met with robust demand, being oversubscribed by 7.55 times by the final day of the share sale. Investors placed bids for a total of 15,03,44,299 shares, surpassing the 1,99,04,862 shares available for purchase, indicating significant interest from the market.

Retail Investors Lead Subscriptions

Retail Individual Investors (RIIs) played a key role in the IPO's success, with their category receiving 10.81 times subscription. Non-institutional investors followed closely, subscribing 9.03 times, while Qualified Institutional Buyers (QIBs) were more conservative, subscribing at 1.24 times.

Anchor Investors Inject Rs 75 Crore

Prior to the broader IPO launch, Garuda secured Rs 75 crore from anchor investors, setting the stage for a successful public offering. This strategic move bolstered confidence among smaller investors and ensured substantial backing from institutional players.

IPO Pricing and Structure

The IPO's price band was set at Rs 92-95 per share, and it features a mix of fresh issue and offer for sale (OFS). The fresh issue consists of 1.83 crore equity shares, while the OFS includes 95 lakh shares from promoter PKH Ventures, contributing to a total IPO size of Rs 264 crore.

Use of IPO Proceeds

Garuda plans to allocate Rs 100 crore from its fresh issue to meet working capital requirements. The remaining funds will be directed towards general corporate purposes, which may include inorganic acquisitions, indicating a strategy aimed at expanding its business operations.

Current Project Pipeline and Order Book

Garuda Construction and Engineering is involved in the civil construction of six residential projects, two commercial projects, one industrial project, and an infrastructure development. The company's order book stands at Rs 1,408.27 crore, showcasing its robust pipeline of ongoing projects.

Financial Performance and Growth

The company has demonstrated impressive financial growth, with revenue from operations more than doubling from Rs 77.02 crore in FY22 to Rs 154.18 crore in FY24, reflecting a Compound Annual Growth Rate (CAGR) of 26%. Similarly, profit after tax increased from Rs 18.78 crore in FY22 to Rs 36.43 crore in FY24, growing at a CAGR of 25%.

IPO Management and Listing

Corpwis Advisors is the sole book-running lead manager for the IPO, while Link Intime India serves as the registrar of the issue. Garuda's shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), offering greater liquidity and market presence for investors.