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Introduction to Garuda Construction And Engineering Ltd IPO
Garuda Construction And Engineering was founded in 2010. The company will issue a book of Rs 264.10 crore, out of which a fresh issue of 1.83 crore shares and an offer-for-sale of 0.95 crore shares will be issued. The initial public offering shall be opened on 8th October, 2024, and closed on 10th October, 2024.
This IPO subscription is an amalgamation of a fresh issue of Rs 173.85 crore amounting to 1.83 crore shares and an offer-for-sale of Rs 90.25 crore for 0.95 crore shares. The firm will list on both BSE and NSE.
The allotment for this will take place on 11th of October, 2024. The price range is set between Rs 92 and Rs 95 per share.
A minimum of 157 shares constitutes the minimum lot size for a bid. Retail investors need to invest a minimum of Rs 14,915. The small NII investors need a minimum investment of Rs 208,810 for 2,198 shares, which is 14 lots. Large NII investors need a minimum investment of Rs 1,014,220 for 10,676 shares, which is 68 lots.
Link Intime India Private Ltd is the IPO’s registrar. Garuda Construction And Engineering Ltd IPO is being led by Corpwis Advisors Private Limited as book-running lead manager.
Garuda Construction And Engineering Ltd IPO Company Details
Garuda Construction and Engineering Limited, founded in 2010, is a construction company offering a wide range of services for residential, commercial, infrastructure, and industrial projects.
Strengths of the company:
Exclusive Focus: Garuda Construction primarily specialises in residential and commercial buildings and is now expanding into industrial and infrastructure projects.
Proven Track Record: The company has successfully completed notable projects like the Golden Chariot Vasai Hotel & Spa and has undertaken residential projects in MMR since 2017.
Strong Project Management: Garuda demonstrates effective project management and execution capabilities.
Robust Financial Performance: Revenue from Operations stood at Rs 1,187.50 Lacs for the period ending 30th April, 2024, Rs 15,417.83 Lacs for FY 2024 and Rs 16,068.76 Lacs for FY 2023.
Increasing Order Book: As on 28th September 2024, total order value for under execution and pending projects was Rs 1,40,827.44 Lacs with projects spread across MMR, Arunachal Pradesh, Karnataka, Rajasthan and Punjab.
Experienced Leadership: The company has an experienced promoter and directors and a management team.
As of 28th September 2024, the company employed 65 permanent staff.
Garuda Construction And Engineering Ltd IPO Details:
| Garuda Construction IPO Opening Date/Closing Date | 8th October – 10th October |
| Face Value | Rs 5 per share |
| Price Band | Rs 92 to Rs 95 per share |
| Lot Size | 157 Shares |
| Total Issue Size | 27,800,000 shares(aggregating up to Rs 264.10 Cr) |
| Fresh Issue | 18,300,000 shares(aggregating up to Rs 173.85 Cr) |
| Offer for Sale | 9,500,000 shares(aggregating up to Rs 90.25 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 74,741,742 |
| Shareholding Post Issue | 93,041,742 |
Garuda Construction IPO tentative schedules:
| IPO Open Date | Tuesday, 8th October, 2024 |
| IPO Close Date | Thursday, 10th October, 2024 |
| Basis of Allotment | Friday, 11th October, 2024 |
| Refund Initiation | Monday, 14th October, 2024 |
| Credit of Shares in Demat | Monday, 14th October, 2024 |
| Listing Date | Tuesday, 15th October, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 10th October, 2024 |
Shares Offered & Their Value By Garuda Construction IPO:
| Application | Lots | Shares | Amounts |
| Retail (Min) | 1 | 157 | Rs 14,915 |
| Retail (Max) | 13 | 2,041 | Rs 193,895 |
| S-HNI (Min) | 14 | 2,198 | Rs 208,810 |
| S-HNI (Max) | 67 | 10,519 | Rs 999,305 |
| B-HNI (Min) | 68 | 10,676 | Rs 1,014,220 |
Investor categories and Garuda Construction And Engineering Ltd shares offered:
| 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 Ltd Financials:
| Periods Ended | 30th Apr, 2024 | 31st Mar, 2023 | 31st Mar, 2022 |
| Assets | 234.84 | 176.35 | 111.03 |
| Revenue | 11.88 | 161.02 | 77.03 |
| Profit After Tax | 3.5 | 40.8 | 18.78 |
| Net Worth | 122.51 | 82.61 | 41.79 |
| Reserves and Surplus | 85.16 | 70.13 | 29.34 |
| Total Borrowing | 0.15 | 0.19 | 11.99 |
Garuda Construction And Engineering Key Performance Indicators (KPI) and their values:
| KPI | Values |
| Return on Equity (ROE) | 36.14% |
| Return on Capital Employed (ROCE) | 46.69% |
| Return on Net Worth (RoNW) | 30.62% |
| Price to Book Value Ratio (P/BV) | 5.97 |
| PAT Margin (%) | 23.63 |
Garuda Construction And Engineering Ltd IPO GMP:
The most recent GMP of the IPO is Rs 0, as of 3rd October, 2024 12:27 PM. The IPO has a price band of Rs 95.00. The estimated listing price for Garuda Construction And Engineering Ltd is Rs 95, reflecting a potential gain of 0.0% per share.
Objectives of the Garuda Construction And Engineering Ltd IPO:
The company plans to use the raised funds for:
- Working Capital Needs
- General Corporate Expenses and Potential Acquisitions
Some major risks associated with the Garuda Construction And Engineering Ltd IPO are:
Dependence on the Construction Sector: It is heavily dependent on the construction sector to obtain performance. Thus, there is a possibility of sector-specific slowdown.
Least Geographical Presence: The company operates in a very small geography. This would restrict the company’s growth prospects and make the company vulnerable to regional market cyclical fluctuations.
Economic Slowdown: Economic slowdown would deteriorate the construction sector, thereby reducing project demand.
High Competition: The construction industry is highly competitive, thus affecting market share and pricing policies.
Regulatory Changes: Regulatory changes are largely related to real estate and construction. This might pose big challenges and a high cost in terms of compliance for the organisation.
Garuda IPO Frequently Asked Questions (FAQs)
What could be the price band for the Garuda Construction And Engineering IPO?
The issue price band is between Rs 92 and Rs 95 for each share.
What could be a quota for the Retail Investors in the IPO application of Garuda Construction And Engineering Ltd?
The issue of shares to retail investors shall be a minimum 35% of the share issue.
Where can we track Garuda Construction And Engineering’s stock performance after it’s listed?
Unicorn Signals provides tracking of a stock’s performance two to three days later, once it’s listed on the stock exchange.
How do I subscribe to Garuda Construction And Engineering’s IPO?
Subscriptions can be made from the IPO opening to the closing date via your demat account or by contacting your bank or financial institution.
What is the closing time for the subscription to Garuda Construction And Engineering’s IPO?
The deadline for the application is 5 PM on 10th October, 2024, yet most brokers will not be accepting applications past 1-3 PM.
Where can I get detailed information on the Garuda Construction And Engineering Ltd IPO?
Detailed information on the same can be found in the following documents filed with SEBI by the company:
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