Garuda Construction and Engineering IPO is a book built issue of Rs 264.10 crores. The issue is a combination of fresh issue of 1.83 crore shares aggregating to Rs 173.85 crores and offer for sale of 0.95 crore shares aggregating to Rs 90.25 crores.
Garuda Construction and Engineering IPO opens for subscription on October 8, 2024 and closes on October 10, 2024. The allotment for the Garuda Construction and Engineering IPO is expected to be finalized on Friday, October 11, 2024. Garuda Construction and Engineering IPO will list on BSE, NSE with tentative listing date fixed as Tuesday, October 15, 2024.
Garuda Construction and Engineering IPO price band is set at ₹92 to ₹95 per share. The minimum lot size for an application is 157 Shares. The minimum amount of investment required by retail investors is ₹14,915. The minimum lot size investment for sNII is 14 lots (2,198 shares), amounting to ₹208,810, and for bNII, it is 68 lots (10,676 shares), amounting to ₹1,014,220.
Corpwis Advisors Private Limited is the book running lead manager of the Garuda Construction and Engineering IPO, while Link Intime India Private Ltd is the registrar for the issue.
Refer to Garuda Construction and Engineering IPO RHP for detailed information.
Garuda Construction and Engineering IPO Details
| IPO Date | October 8, 2024 to October 10, 2024 |
| Listing Date | [.] |
| Face Value | ₹5 per share |
| Price Band | ₹92 to ₹95 per share |
| Lot Size | 157 Shares |
| Total Issue Size | 27,800,000 shares (aggregating up to ₹264.10 Cr) |
| Fresh Issue | 18,300,000 shares (aggregating up to ₹173.85 Cr) |
| Offer for Sale | 9,500,000 shares of ₹5 (aggregating up to ₹90.25 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 74,741,742 |
| Share holding post issue | 93,041,742 |
Garuda Construction and Engineering IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Offer |
Garuda Construction and Engineering IPO Timeline (Tentative Schedule)
Garuda Construction and Engineering IPO opens on October 8, 2024, and closes on October 10, 2024.
| IPO Open Date | Tuesday, October 8, 2024 |
| IPO Close Date | Thursday, October 10, 2024 |
| Basis of Allotment | Friday, October 11, 2024 |
| Initiation of Refunds | Monday, October 14, 2024 |
| Credit of Shares to Demat | Monday, October 14, 2024 |
| Listing Date | Tuesday, October 15, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 10, 2024 |
Garuda Construction and Engineering IPO Lot Size
Investors can bid for a minimum of 157 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 157 | ₹14,915 |
| Retail (Max) | 13 | 2041 | ₹193,895 |
| S-HNI (Min) | 14 | 2,198 | ₹208,810 |
| S-HNI (Max) | 67 | 10,519 | ₹999,305 |
| B-HNI (Min) | 68 | 10,676 | ₹1,014,220 |
| Lot Size Calculator | |||
Garuda Construction and Engineering IPO Promoter Holding
Pravinkumar Brijendra Kumar Agarwal, PKH Ventures Limited and Makindian Township Private Limited are the company’s promoters.
| Share Holding Pre Issue | 96.81% |
| Share Holding Post Issue |
About Garuda Construction and Engineering Limited
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.
Strengths:
- Exclusive and focused business approach: The company primarily focuses on the construction of residential and commercial buildings and is now venturing into industrial and infrastructure projects.
- Established and proven track record: 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.
- Strong project management and execution capabilities
- Strong financial performance and healthy balance sheet: The company recorded Revenue from Operations of Rs. 1,187.50 Lacs for the period ended April 30, 2024, Rs. 15,417.83 Lacs in FY 2024 and Rs. 16068.76 Lacs in FY 2023.
- Visible growth through increasing order book: As of September 28, 2024, the order value of the company’s ongoing and pending projects totaled Rs. 1,40,827.44 lacs. 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.
- Experienced promoter, directors, and management team
As of September 28, 2024, the company had 65 permanent employees.
Company Financials
Garuda Construction and Engineering Limited Financial Information (Restated)
Garuda Construction and Engineering Limited’s revenue decreased by -4% and profit after tax (PAT) dropped by -11% between the financial year ending with March 31, 2024 and March 31, 2023.
| Period Ended | 30 Apr 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Assets | 234.84 | 228.49 | 176.35 | 111.03 | ||||||||||||||||||||||||||||||||||||
| Revenue | 11.88 | 154.47 | 161.02 | 77.03 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 3.5 | 36.44 | 40.8 | 18.78 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 122.51 | 119.01 | 82.61 | 41.79 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 85.16 | 81.65 | 70.13 | 29.34 | ||||||||||||||||||||||||||||||||||||
| Total Borrowing | 0.15 | 0.15 | 0.19 | 11.99 | ||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
The market capitalization of Garuda Construction and Engineering IPO is Rs 883.9 Cr.
KPI as of March 31, 2024.
| KPI | Values |
|---|---|
| ROE | 36.14% |
| ROCE | 46.69% |
| RoNW | 30.62% |
| P/BV | 5.97 |
| PAT Margin (%) | 23.63 |
Check Garuda Construction and Engineering IPO Peer Comparison here.
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 4.87 | 4.52 |
| P/E (x) | 19.49 | 21.03 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of April 30, 2024 that is available in RHP.
Objects of the Issue (Garuda Construction and Engineering IPO Objectives)
The Company proposes to utilize the funds being raised to fund the following objectives:
- Working Capital Requirements
- General Corporate Expenses and Unidentified Inorganic Acquisitions
Garuda Construction and Engineering IPO Review (Avoid)
[Dilip Davda] The company is engaged in civil, commercial and infra constructions and related services. It marked inconsistency in its financial performance for the reported periods with average financial data. Group company PKH Ventures came with its maiden IPO to mobilize Rs. 379 cr. in July 2023, withdrew it due to poor response under the pretext of bad market conditions. Its trade receivables are higher than its top lines reported so far. These are the major concerns. It has orders worth Rs. 1400+ cr. in hands as of the date of filing this offer document which is the only attraction. Based on FY25 annualized super earnings, the issue appears aggressively priced. There is no harm in skipping this “High Risk/Low Return” pricey bet. Read detail review…
Garuda Construction and Engineering IPO Prospectus
Garuda Construction and Engineering Limited Contact Details
Garuda Construction and Engineering Limited
201, A Wing,
Fortune 2000 C -3 Block, Bandra Kurla Complex,
Bandra (East), Mumbai 400 051
Phone: +91 22 79635174
Email: compliance@garudaconstructionengineering.com
Website: https://garudaconstructionengineering.com/
Garuda Construction and Engineering IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: garudaconstructions.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
Garuda Construction and Engineering IPO – Buy or Not
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What is Garuda Construction and Engineering IPO?
Garuda Construction and Engineering IPO is a main-board IPO of 27,800,000 equity shares of the face value of ₹5 aggregating up to ₹264.10 Crores. The issue is priced at ₹92 to ₹95 per share. The minimum order quantity is 157 Shares.
The IPO opens on October 8, 2024, and closes on October 10, 2024.
Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.