Garuda Construction IPO subscribed 7.55 times

The initial public offering of Garuda Construction and Engineering was subscribed 7.55 times. The issue has generated a strong response from retail investors and non-institutions (HNIs) while qualified institutional buyers remained somewhat muted.

The IPO came out with a price band of ₹92-95 a share. The ₹264-crore IPO consisted of a fresh issue of ₹173.85 crore and an offer for sale (OFS) of 95 lakh shares by promoter PKH Ventures.

While retail investors’ portion was subscribed 10.81 times, the quota reserved for HNIs received bids for 9 times and that of QIB’s 1.24 times.

As part of IPO, the company on Monday raised ₹75 crore from anchor investors. AG Dynamic Funds, Trust Mutual Fund, Maybank Securities Pte Ltd, North Star Opportunities Fund VCC, Resonance Opportunities Fund, Bridge India Fund, and Cognizant Capital Dynamic Opportunities Fund were among the anchor investors.

Proceeds from its fresh issuance to the extent of ₹100 crore will be utilised for working capital requirements; and the rest towards general corporate purposes including unidentified inorganic acquisitions.

The Mumbai-based Garuda Construction is engaged in civil construction of six residential projects, two commercial projects, one industrial project and one infrastructure, with an order book of ₹1,408.27 crore.

Corpwis Advisors is the sole book-running lead manager and Link Intime India is the registrar of the issue.