Garuda Construction and Engineering Limited is launching an IPO with a total issue size of ₹264.10 crores. This is a book-built issue, comprising a fresh issue of 1.83 crore shares worth ₹173.85 crores and an offer for sale of 0.95 crore shares aggregating to ₹90.25 crores. The IPO will open for subscription on October 8, 2024, and close on October 10, 2024.
The IPO price band is set between ₹92 to ₹95 per share, with a minimum lot size of 157 shares. Retail investors can invest with a minimum amount of ₹14,915. For sNII, the minimum investment is ₹208,810 for 14 lots (2,198 shares), and for bNII, it is ₹1,014,220 for 68 lots (10,676 shares).
The allotment is expected to be finalised by October 11, 2024, and the listing is tentatively scheduled for October 15, 2024, on the BSE and NSE.
Industry Outlook
- The Indian construction sector grew at a CAGR of 10.6% between FY18 and FY23, rising from ₹2,375 billion to ₹3,922 billion, showcasing significant expansion.
- Infrastructure dominates the construction sector, contributing 59.7% as of FY23, driven by increased government spending, with the sector projected to reach ₹6,494 billion by FY30.
Garuda Construction and Engineering IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Working Capital Requirements
- General Corporate Expenses and unidentified inorganic acquisitions
About Garuda Construction and Engineering Limited
Garuda Construction and Engineering Limited, established in 2010, is a rapidly growing civil construction company specialising in end-to-end construction services for residential, commercial, infrastructure, and industrial projects.
With expertise in detailed surveys, designing, engineering, resource mobilisation, procurement, construction, and final project handover, Garuda offers comprehensive solutions, including operations and maintenance (O&M), mechanical, electrical, and plumbing (MEP) services, and finishing works.
Initially focused on in-house projects for its promoter group, Garuda has expanded into third-party contracts and aims to take on larger roles as developers. Key projects include the construction of the Golden Chariot Vasai Hotel & Spa, Rivali Park in Mumbai, and the prestigious Delhi Police Headquarters.
As of the Red Herring Prospectus filing, Garuda's order book stands at ₹1,40,827.44 lakhs, consisting of 12 ongoing projects, with seven projects exceeding a contract value of ₹10,000 lakhs each.
Peer Details
The companies considered by Garuda Construction and Engineering as its peers include:
- PSP Projects Limited
- Capacite Infraprojects Limited
- Vascon Engineers Limited
- Ahluwalia Contracts (India) Limited
- B.L. Kashyap and Sons Limited
How To Check the Allotment Status of the Garuda Construction and Engineering IPO?
A: Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Garuda Construction and Engineering IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Garuda Construction and Engineering IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Garuda Construction and Engineering IPO
Registered office: 201, A Wing, Fortune 2000 C -3 Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra
Phone: +91 22 79635174
E-mail: compliance@garudaconstructionengineering.com
Financial Performance of Garuda Construction and Engineering
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Total Revenue (in ₹ lakh ) | 15,446.88 | 16,068.76 | 7,702.79 |
| Profit After Tax (PAT) (in ₹ lakh) | 3,643.53 | 4,079.53 | 1,878.22 |
| Cash and Cash Equivalents (in ₹ lakh) | 50.73 | 484.60 | 688.39 |
| Net Worth (in ₹ lakh) | 11,900.64 | 8,261.18 | 4,179.04 |
| Debt to Equity Ratio (x) | 0 | 0 | 0.29 |
| Return on Equity (%) | 36.14% | 49.38% | 44.94% |
| Return on Capital Employed (RoCE) (%) | 46.69% | 60.20% | 42.44% |
| Earning Per Share (EPS)-in absolute ₹ | 4.87 | 5.46 | 2.51 |
Know before investing
Strengths
6Focused on residential, commercial, industrial, and infrastructure construction projects.
Proven track record with successful projects in MMR, Karnataka.
Growing order book: ₹1,40,827.44 lacs as of September 2024.
Strong project management and execution capabilities across diverse sectors.
Strong financial performance with consistent growth in revenue and profitability.
Experienced promoters and management ensure effective strategic direction.
Risks
6Heavy reliance on top 10 clients contributing 100% of revenue.
Limited experience in third-party contracts may affect growth.
Negative cash flow in FY24 and FY23 impacts financial stability.
Revenue concentration in MMR poses market and regional risks.
High exposure to EPC contracts with potential performance risks.
Failure of previous PKH Ventures IPO could affect investor confidence.
