Garuda Construction and Engineering IPO Listing: Key Highlights

Garuda Construction and Engineering Ltd is making its stock market debut today, October 15, after receiving solid demand during its IPO subscription period.

IPO Timeline and Listing Details

• Subscription Period: October 8 to October 10
• IPO Allotment Date: October 11
• Listing Date: October 15
• Exchanges: BSE and NSE
• Price Band: ₹90 – ₹95 per share
• Total IPO Size: ₹264.10 crore
  • Fresh issue: 1.83 crore shares (₹173.85 crore)
  • Offer for sale: 95 lakh shares (₹90.25 crore)

A BSE notice confirmed that the shares will be listed under the ‘B’ Group of Securities and will be part of the Special Pre-open Session (SPOS), with trading commencing at 10:00 AM.

Grey Market Premium (GMP) Insights

• GMP Today: ₹0 per share
• According to analysts, the zero GMP indicates no premium or discount in the grey market, suggesting a flat or slightly negative listing.

Expected Listing Performance

• Estimated Listing Price: ₹95 per share (range: ₹92 – ₹95)
• Analysts predict a muted start with gains/losses between -3% to +5%.
• VLA Ambala, Co-Founder of Stock Market Today, advises caution, suggesting investors wait for the stock to stabilize instead of rushing into the secondary market. She recommends considering a dip-buying strategy if the stock drops to ₹65 – ₹70 in the first 10 days.

Post-Listing Outlook

Ambala acknowledges that short-term listing gains may be limited but suggests holding the stock with a 25% exposure, as it could deliver 20-40% returns in the coming weeks. She also notes that market conditions might make larger or mid-sized firms more attractive for experienced investors.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, highlighted the IPO’s 7.55x subscription but emphasized the cyclical nature of the industry and market volatility, which could result in short-term losses.

Sagar Shetty, Research Analyst at StoxBox, recommends a medium to long-term perspective for those allotted shares, given the company’s solid financials and expansion into high-growth segments.

IPO Performance Summary

• Subscription Details:
  • Retail Individual Investors (RIIs): 10.81x
  • Non-Institutional Investors (NIIs): 9.03x
  • Qualified Institutional Buyers (QIBs): 1.24x

Corpwis Advisors Private Limited managed the IPO, with Link Intime India Private Ltd serving as the registrar.

In summary, while the IPO was well-received, analysts suggest that short-term volatility and flat listing prospects warrant a careful approach. Investors are advised to monitor performance and consider buying on dips to maximize returns.