Garuda Construction and Engineering IPO Anchor Allocation at 28.4%

Garuda Construction and Engineering IPO saw a positive anchor allocation response, with 28.4% of the total IPO size subscribed by anchor investors. Out of 27,800,000 shares on offer, anchors picked up 7,895,138 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 7th October 2024, just ahead of the IPO opening on 8th October 2024.

The book-built issue of ₹264.10 crores comprises a fresh issue of 18,300,000 shares aggregating to ₹173.85 crores and an offer for sale of 9,500,000 shares aggregating to ₹90.25 crores. The price band is set at ₹92 to ₹95 per share, with a face value of ₹5 per share. This includes a share premium of ₹90 per share at the upper end of the price band.

The anchor allocation process, which took place on 7th October 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹95 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

Notably, the 78,95,138 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 50% before the anchor allocation to 21.60% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Garuda Construction and Engineering IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 10th November 2024 
• Lock-in Period (Remaining Shares): 9th January 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Garuda Construction and Engineering IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 7th October 2024, Garuda Construction and Engineering IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 7,895,138 shares were allotted to 7 anchor investors. The allocation was done at the upper IPO price band of ₹95 per share, resulting in an overall anchor allocation of ₹75.00 crore. The anchors have already absorbed 28.40% of the total issue size of ₹264.10 crore, indicating strong institutional demand.

Key IPO Details:

• IPO Size: ₹264.10 crores
• Shares Allocated to Anchors: 7,895,138
• Anchor Subscription Percentage: 28.40%
• Listing Date: 15th October 2024
• IPO Opening Date: 8th October 2024

Also read all about Garuda Construction IPO

About Garuda Construction IPO and How to Apply for IPO?

Garuda Construction and Engineering Limited was founded in 2010 and is a construction company. The company provides comprehensive construction services for residential, commercial, residential/commercial, infrastructure, and industrial projects, as well as additional services for infrastructure and hospitality projects. The company also provides services such as operation and maintenance (O&M) and mechanical, electrical and plumbing (MEP) services as well as finishing works as part of construction services.

The company has a strong track record in various construction projects, including Golden Chariot Vasai Hotel & Spa and Golden Chariot Boutique Hotel in 2015. Since 2017, the company has undertaken residential projects in MMR and completed two. From 2010 to 2017, the company focused on civil engineering in MMR, Karnataka and Tamil Nadu.
As of 28th September 2024, the order value of the company's ongoing and pending projects totalled ₹1,40,827.44 lakh. With projects spread across MMR, Arunachal Pradesh, Karnataka, Rajasthan, and Punjab, the increasing number of construction works and projects helped the company maintain its growth momentum and reputation. As of 28th September 2024, the company had 65 permanent employees.

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