The initial public offering (IPO) of Garuda Construction and Engineering, which opened for bidding on October 8, was subscribed over 1.91 times on the first day, Tuesday.
According to stock exchange data, the issue received bids for 3,80,15,666 shares compared to the 1,99,04,862 equity shares offered, with a price range of ₹90-95. The retail portion was subscribed 3.43 times, while the non-institutional investors' portion saw a 1.10 times subscription.
However, the qualified institutional buyer portion was subscribed just 0.02 times. The issue opened for subscription on Tuesday, October 8 and will close on Thursday, October 10.
A day before the opening of the issue, Garuda Construction and Engineering Ltd raised ₹75 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were AG Dynamic Funds Trust Mutual Fund, Maybank Securities, North Star Opportunities Fund, Resonance Opportunities Fund, Bridge India Fund, and Cognizant Capital Dynamic Opportunities Fund.
The shares of Garuda Construction and Engineering IPO is currently trading at a premium of ₹5 in the grey market premium, according to investorgain.com.
This means that the estimated listing price of Garuda Construction and Engineering is likely to be ₹100, which is 5.26 per cent higher than the IPO price of ₹95.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
The IPO will include a fresh issue of up to 18.3 million equity shares, along with an offer for sale of up to 9.5 million equity shares. The IPO will close for bidding on October 10.
The price band for the offer is set between ₹90 and ₹95 per share, with the IPO expected to raise ₹264.10 crore at the upper end of the range.
Investors can place bids for a minimum of 157 equity shares and in multiples of 157 shares thereafter. The offer will follow the book-building process, with no more than 50% allocated to qualified institutional buyers, at least 15% to non-institutional investors, and a minimum of 35% reserved for retail investors.
Corpwis Advisors Private Ltd is the sole lead manager and Link Intime India Private Ltd serves as the registrar for the issue.
