Garuda Construction and Engineering IPO: 10 key risks investors should know before subscribing to the ₹264-crore issue | Stock Market News
Source: Live Mint
Garuda Construction and Engineering IPO: The first day of bidding for Garuda Construction and Engineering Ltd started well, with the issue being fully booked and receiving a positive response from retail investors.
The Garuda Construction IPO consists of a combination of 1.83 crore fresh equity shares and an Offer For Sale (OFS) of 95 lakh equity shares by promoter PKH Ventures. At the upper end of the price band, the IPO is valued at ₹264 crore. Out of the fresh issuance, ₹100 crore will be used for working capital needs, and the remaining amount will be allocated to general corporate purposes, including potential inorganic acquisitions.
Qualified institutional buyers have been allocated half of the issue size, while 35 per cent is reserved for retail investors and the remaining 15 per cent for non-institutional investors. Investors have the option to bid for a minimum of 157 equity shares and in multiples of 157 equity shares thereafter.
Currently, Garuda Construction and Engineering is involved in the civil construction of six residential projects, two commercial projects, one industrial project, and one infrastructure project, with an order book totalling ₹1,408.27 crore.
Garuda Construction and Engineering IPO price band is set in the range of ₹92-95 per share. The investors can subscribe to the initial share sale from today (Tuesday, October 8) until Thursday, October 10.
Garuda Construction IPO – Key Risks
Here are some of the key risks listed by the company in its Red-Herring Prospectus (RHP):
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