Garuda Construction Raises Rs 75 Crore From Anchor Investors Ahead Of Rs 264 Crore IPO

Garuda Construction and Engineering Ltd. raised Rs 75 crore from anchor investors ahead of its initial public offering, an exchange filing showed on Monday.

A day before the IPO's launch, the Mumbai-based company said its board finalised the allocation of 78.95 lakh shares to anchor investors at a price of Rs 95 apiece.

The maximum shares in the anchor book round, worth Rs 20 crore, were allotted to AG Dynamic Funds Ltd.

Five other entities—Trust Mutual Fund - Trust MF Flexi Cap Fund, Maybank Securities Pte., North Star Opportunities Fund VCC, Resonance Opportunities Fund and Bridge India Fund—were each allotted shares worth around Rs 10 crore.

The remaining shares, worth around Rs 5 crore, were allotted to Cognizant Capital Dynamic Opportunities Fund, the filing showed.

The three-day subscription window for Garuda Construction's IPO will open on Tuesday and close on Thursday. The company is targeting to raise up to Rs 264.1 crore, comprising Rs 173.85 crore through a fresh issue and Rs 90.25 crore via an offer for sale, as per the pre-offer documents.

The price band for the IPO is Rs 92-95 per share. Ahead of the issue's launch, the company's shares commanded a grey market premium of Rs 22 apiece, according to investorgain.com. This takes the estimated listing price to Rs 117 per share—the sum of GMP and the upper end of the IPO price.

If the shares debut at Rs 117 apiece, IPO allottees would bag a listing day gain of 23%. However, the GMP is not an official price quote for the stock and is based on speculation.

Garuda Construction aims to use the fresh issue proceeds, to the extent of Rs 100 crore, for working capital requirements. The remainder of the fundraise is to be used for general corporate purposes, including unidentified inorganic acquisitions as per the draft documents.

The sole book running lead manager for the IPO is Corpwis Advisors, whereas Link Intime India is the registrar.

On the financial front, Garuda Construction's net profit increased to Rs 36.4 crore in fiscal 2024 from Rs 18.8 crore in fiscal 2022, at a compounded annual growth rate of 25%. The revenue from operations during the same period climbed to Rs 154.2 crore from Rs 77 crore at a CAGR of 26%.