1. Garuda Construction and Engineering IPO – IPO Size
The Garuda Construction and Engineering Limited IPO features a fresh issue of up to 1,83,00,000 equity shares, aggregating up to ₹173.85 crore. Additionally, it includes an offer for sale (OFS) of up to 95,00,000 equity shares, totaling ₹90.25 crore. This strategic move aims to bolster the company’s growth and expand its operational capabilities, making it a noteworthy investment opportunity for those looking to engage in the booming construction sector.
Garuda Construction and Engineering IPO – Key Dates
The much-anticipated Garuda Construction and Engineering Limited IPO is set to open on Tuesday, October 8, 2024, and will close on Thursday, October 10, 2024. This IPO presents a unique opportunity for investors interested in the burgeoning construction sector.
After the bidding period, the basis of allotment will be finalized on Friday, October 11, 2024. Investors can look forward to the listing date, which is scheduled for Tuesday, October 15, 2024.
Stay tuned for more updates and insights as the Garuda Construction and Engineering Limited IPO approaches.
Garuda Construction and Engineering IPO – IPO Objectives
Garuda Construction and Engineering Limited IPO intends to utilize the Net Proceeds to meet the following Objects:
- Funding the working capital requirement of the Company
- General corporate purposes including unidentified inorganic acquisition
2. Garuda Construction and Engineering IPO – IPO Reservation
The Garuda Construction and Engineering Limited IPO is shaping up to be an exciting opportunity for a variety of investors. The share allocation is thoughtfully structured to appeal to different categories. Qualified Institutional Buyers (QIBs) can grab up to 50.00% of the net offer, which reflects strong interest from institutional investors. For retail investors, there’s a minimum allocation of 35.00% of the net issue, making it accessible for individual investors looking to get in on the action. Additionally, High Net Worth Individuals (HNI) or Non-Institutional Investors (NII) will be offered at least 15.00% of the net offer. This diverse allocation strategy aims to attract a broad spectrum of investors to the Garuda Construction and Engineering Limited IPO, enhancing its overall appeal.
| Sr. No. | Investor Category | Shares Offered |
| 1 | QIB Shares Offered | Not more than 50.00% of the Net offer |
| 2 | Retail Shares Offered | Not less than 35.00% of the Net offer |
| 3 | NII (HNI) Shares Offered | Not less than 15.00% of the Net Offer |
3. Garuda Construction and Engineering IPO – About the Company
Garuda Construction and Engineering Limited is an emerging player in the civil construction sector, showcasing impressive growth in revenue from operations. For the period ending April 30, 2024, the company reported revenues of ₹1,187.50 lakhs, with totals of ₹15,417.83 lakhs, ₹16,068.76 lakhs, and ₹7,702.08 lakhs for Fiscal 2024, Fiscal 2023, and Fiscal 2022, respectively.
The company specializes in end-to-end civil construction services across various sectors, including residential, commercial, hospitality, infrastructure, and industrial projects. Their thorough approach covers everything from detailed route surveys and engineering to resource mobilization and project handover.
Garuda also manages the construction of both concrete and composite steel structures through subcontractors, ensuring adherence to specified designs. Additionally, they offer operations and maintenance (O&M) services, as well as mechanical, electrical, and plumbing (MEP) services, rounding out their robust portfolio.
Garuda Construction and Engineering was founded on September 21, 2010, as a private limited company with the goal of enhancing its capabilities in civil construction across various sectors, including residential, commercial, and infrastructure projects. The company aims to secure larger contracts beyond its current group entities and broaden its client base.
Starting its journey in the hospitality sector with the Golden Chariot Vasai Hotel & Spa, Garuda has steadily expanded its portfolio. Notable milestones include the completion of the hotel in 2014 and subsequent refurbishments. In 2017, the company ventured into residential construction with projects like Rivali Park in Kandivali.
4. Garuda Construction and Engineering IPO – Financials
Garuda Construction and Engineering IPO considers the following KPIs to have a bearing for arriving at the basis for the Issue Price.
The table below also sets forth a brief explanation of and the importance of these KPIs for our business
and operations, along with details of KPIs as at for the period ended April 30, 2024 and for the financial
years ended March 31, 2024, March 31, 2023 and March 31, 2022
| Sr.No. | Key Financial Performance | Period Ended 30.04.2024 | Year Ended 31.03.2024 | Year Ended 31.03.2023 | Year Ended 31.03.2022 |
| 1 | Total Revenue | 1,187.50 | 15,446.88 | 16,102.41 | 7,702.79 |
| 2 | Profit After Tax (PAT) | 350.17 | 3,643.53 | 4,079.53 | 1,878.22 |
| 3 | PAT Margin | 29.49% | 23.63% | 25.39% | 24.39% |
| 4 | Net Debt | – | – | – | 510.64 |
| 5 | Net Worth | 12,250.81 | 11,900.64 | 8,261.18 | 4,179.04 |
| 6 | ROE (%) | 2.90% | 36.14% | 65.59% | 57.97% |
| 7 | ROCE (%) | 3.87% | 46.69% | 70.85% | 40.46% |
| 9 | Basic EPS (INR) | 0.47 | 4.87 | 5.46 | 2.51 |
5. Garuda Construction and Engineering IPO – Lead Manager and Registrar
As the Garuda Construction and Engineering Limited IPO approaches, it’s important to note the key players involved in this significant event. The book lead managers for the IPO are Corpwis Advisors Private Limited, who will guide the company through the intricacies of the offering and ensure a smooth process. Additionally, Link Intime India Private Limited has been appointed as the registrar for the IPO, responsible for managing the allotment of shares and handling investor queries. With these experienced partners on board, the Garuda Construction and Engineering Limited IPO is poised for a successful launch, attracting a diverse range of investors eager to participate in this promising opportunity.
6. Garuda Construction and Engineering IPO – Listed Peers
As the Garuda Construction and Engineering Limited IPO prepares for its launch, it stands out among notable competitors in the construction sector. Companies like PSP Projects Limited, Capacite Infraprojects Limited, Vascon Engineers Limited, Ahluwalia Contracts (India) Limited, and B L Kashyap & Sons Limited are all key players in the industry. By analyzing these peers, potential investors can gauge the market landscape and the competitive positioning of Garuda. With its unique strengths and growth plans, the Garuda Construction and Engineering Limited IPO offers an intriguing opportunity for those looking to invest in a company that aims to make its mark in this dynamic field.
| Sr. No | Name of the company | Face Value (₹ Per Share) | EPS (₹) | P/E Ratio | RoNW (%) | Net Asset Value per share (₹) |
| 1 | Garuda Construction & Engineering Ltd# | 5.00 | 4.87 | – | 36.14% | 15.92 |
| 2 | PSP Projects Limited | 10.00 | 34.16 | 20.00 | 17.73% | 254.13 |
| 3 | Capacite Infraprojects Limited | 10.00 | 16.09 | 23.61 | 9.35% | 223.44 |
| 4 | Vascon Engineers Limited | 10.00 | 3.05 | 22.66 | 11.32% | 44.33 |
| 5 | Ahluwalia Contracts (India) Limited | 2.00 | 55.95 | 22.97 | 17.14% | 238.84 |
| 6 | B L Kashyap & Sons Limited | 1.00 | 2.33 | 48.67 | 13.38% | 22.02 |
7. Garuda Construction and Engineering IPO – GMP
GMP not yet available.
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