Shares of Garuda Construction and Engineering Ltd. surged over 10% on Thursday, following the announcement that the company had secured a major contract worth Rs 1,087.34 crore from the Gorakhpur Development Authority. This marks the largest order in the company's history.
The new contract involves the development of an International Convention Centre in Gorakhpur, a state-of-the-art facility spanning 24 lakh square feet, with a seating capacity of 5,000. The project is set to be completed within the next 30 months. In addition to the convention centre, the company will also develop adjacent commercial and residential areas, further expanding its presence in the region.
The order significantly boosts Garuda Construction's order book, which now stands at Rs 2,830 crore, more than doubling from Rs 1,408.27 crore at the time of the company's IPO in October 2024. This growth highlights the company's expanding market footprint and its ability to secure large-scale projects in both public and private sectors.
Garuda Construction has already secured necessary approvals from the GDA, including fire safety clearances, for the ambitious project.
Garuda Construction's recently had its initial public offering, that was oversubscribed 7.55 times on its final day of bidding. The Rs 264-crore IPO received a total of 15,03,44,299 bids for the 1,99,04,862 shares on offer, according to data from the NSE.
Garuda Construction Share Price Today
Share price of Garuda Construction rose as much as 10.75% before paring gains to trade 6.48% higher at Rs 130.82 apiece, as of 10:44 a.m. This compares to a 0.43 advance in the NSE Nifty 50.
The stock has risen 23% in the last 12 months. Total traded volume so far in the day stood at 1.3 times its 30-day average. The relative strength index was at 56.
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