The Garuda Construction and Engineering IPO, which opened for subscription on October 8 and closes today, October 10, has attracted significant attention. Subscribed 6.3 times overall, with retail investors leading at 9.75 times, the IPO aims to raise ₹264.1 crore. The Garuda Construction IPO GMP price is ₹5, implying a Garuda Construction IPO listing price of approximately ₹100 per share, reflecting a 5.26% gain over the upper issue price. While the company’s strong order book suggests potential, concerns about its recent financial performance may cause hesitation among investors. If you want to learn how to analyze IPOs like this or even better, visit GRM IIT for expert training.
What Is the GMP of Garuda Construction IPO?
The Garuda Construction IPO GMP price is ₹5, suggesting a potential Garuda Construction IPO listing price of ₹100 per share, offering a 5.26% gain over the upper issue price of ₹95. Investors are keen to know whether the Garuda Construction IPO GMP is good or bad. Given the moderate premium, this IPO might offer decent listing gains. However, it’s important to consider not just the GMP percentage but the company’s overall financial health when deciding whether to invest.
Garuda Construction and Engineering Limited: Company Overview
Foundation and Location
Founded in 2010, Garuda Construction and Engineering Limited is based in Mumbai and offers Engineering, Procurement, and Construction (EPC) services for residential, commercial, infrastructure, and industrial projects.
Financial Performance
Despite its impressive ₹1,400 crore order book, the company has seen a revenue drop from ₹157 crore in FY2023 to ₹151 crore in FY2024, raising questions about its recent performance. Investors must consider how this will impact the Garuda Construction IPO GMP percentage and the potential for long-term success.
Garuda Construction IPO GMP Price and Listing Price
The Garuda Construction IPO price range is set between ₹92 and ₹95 per share, with a market lot of 157 shares. Given the current Garuda Construction IPO GMP price of ₹5, the Garuda Construction IPO listing price is expected to be around ₹100 per share, representing a 5.26% gain over the upper price band. This gain might be modest compared to other IPOs, but it could still offer a reasonable short-term profit for those who invest based on the Garuda Construction IPO GMP.
Is It Good to Buy Garuda Construction IPO?
Many investors are wondering: Is it good to buy Garuda Construction IPO? While the subscription numbers are strong—retail investors subscribed 9.75 times, Non-Institutional Investors (NIIs) subscribed 6.12 times, and Qualified Institutional Buyers (QIBs) subscribed 1.08 times—there are concerns about the company’s declining revenue and profit margins. The Garuda Construction IPO GMP suggests potential for modest listing gains, but long-term investors should consider the company’s financial performance and market conditions.
Garuda Construction IPO GMP Percentage: What Does It Mean?
The Garuda Construction IPO GMP percentage of 5.26% is a reflection of the market’s expectations for listing gains. While this indicates some positive sentiment, it’s crucial to weigh whether this GMP percentage is enough to justify investing, especially considering the company’s recent financial downturn. Investors looking at short-term gains might find the Garuda Construction IPO GMP good, but those eyeing the long-term should take a deeper look at the company’s fundamentals.
Should You Invest in Garuda Construction IPO for Long-Term?
Strengths
Garuda Construction and Engineering Limited has a strong history of delivering on its projects, including notable ones like the Delhi Police HQ.
Weaknesses
However, the company’s recent decline in revenue and profitability raises questions about its long-term prospects. Given the cyclical nature of the construction industry and potential cash flow challenges, it is crucial to assess whether the Garuda Construction IPO GMP price will lead to sustainable growth in the future.
Investors should balance the potential for immediate Garuda Construction IPO listing price gains with the risks of long-term investment.
Final Thoughts: Is Garuda Construction IPO GMP Good or Bad?
In conclusion, the Garuda Construction IPO GMP price of ₹5, offering a potential 5.26% gain, indicates a cautious yet optimistic outlook. The Garuda Construction IPO listing price is expected to hover around ₹100 per share, which is modest but could still provide decent returns for investors focused on short-term gains. However, given the company’s recent financial performance, it’s important to ask: Is the GMP of Garuda Construction IPO good or bad? The answer depends on whether you are looking for quick profits or sustainable long-term growth.
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