Garuda Construction and Engineering IPO Price: ₹92 to ₹95 per share
IPO Dates: 8 October – 10 October 2024
Company Overview
Garuda Construction and Engineering Limited was founded in 2010 and specializes in providing comprehensive construction services. Originally incorporated as a private limited company, it was converted into a public limited company in September 2023. The company is headquartered in Mumbai, Maharashtra, at 201, A Wing, Fortune 2000 C 3 Block, Bandra Kurla Complex, Bandra (East).
Services Offered
Garuda Construction offers end-to-end civil construction services for residential, commercial, infrastructure, and industrial projects. Additionally, the company provides specialized services such as operations and maintenance (O&M), Mechanical, Electrical, and Plumbing (MEP) services, and finishing works. These services extend to infrastructure and hospitality sectors, making the company a versatile player in the construction industry.
Project Portfolio and Execution
The company has a diverse portfolio of projects, including six residential, two commercial, one industrial, and one infrastructure project, with a total order book value of ₹ 1,408.27 crores as of September 2024. The aggregate area under construction for all projects spans 29,68,873.54 square feet. Notably, seven of these projects have individual contract values exceeding ₹ 100 crore.
Garuda Construction has received a Letter of Intent from the Gorakhpur Development Authority for the construction of the Rapti Nagar Extension Township and Sports City in Gorakhpur, Uttar Pradesh. The company’s projects are spread across multiple geographies, including Maharashtra, Punjab, Karnataka, New Delhi, Tamil Nadu, Rajasthan, and Arunachal Pradesh. It follows an asset-light model by outsourcing the majority of its equipment and labor to third-party contractors for cost-effective project execution.
Track Record and Growth
The company has an established track record of success in residential and commercial projects, highlighted by notable achievements such as the Golden Chariot Vasai Hotel & Spa and the Golden Chariot Boutique Hotel in 2015. Since 2017, it has completed two residential projects in the Mumbai Metropolitan Region (MMR) and continues to expand its portfolio in this area. From 2010 to 2017, Garuda Construction primarily focused on civil engineering projects in MMR, Karnataka, and Tamil Nadu.
Financial Performance
Garuda Construction has demonstrated strong financial performance in recent years. The company recorded revenue from operations of ₹1,187.50 lakhs for the period ending April 30, 2024, ₹15,417.83 lakhs in FY 2024, and ₹16,068.76 lakhs in FY 2023. This steady financial growth is supported by a robust order book and strong project management capabilities.
Future Outlook
Garuda Construction is poised for future growth by venturing into contracts with third-party clients, moving beyond its previous focus on in-house sub-contract work for its promoter group and related entities. With an expanding order book totaling ₹1,40,827.44 lakhs as of September 28, 2024, and projects across various states, the company aims to maintain its growth momentum and enhance its reputation in the construction industry.
Leadership and Team
Garuda Construction benefits from the expertise of an experienced promoter, a dedicated management team, and skilled directors. This leadership, combined with the company’s focus on customer satisfaction and long-term relationships, positions it well for continued success in the competitive construction landscape.
Bidding Starts In
Garuda Construction and Engineering IPO Specifics:
| IPO Date | October 8, 2024 to October 10, 2024 |
| Listing Date | Tuesday, October 15, 2024 |
| 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 (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 Timetable (Important Dates)
| 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
Bidders have the opportunity to bid for a minimum of 157 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 157 | ₹14,915 |
| Retail (Max) | 13 | 2,041 | ₹1,93,895 |
| S-HNI (Min) | 14 | 2,198 | ₹2,08,810 |
| S-HNI (Max) | 67 | 10,519 | ₹9,99,305 |
| B-HNI (Min) | 68 | 10,676 | ₹10,14,220 |
Garuda Construction and Engineering IPO Reservation
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Garuda Construction and Engineering Limited IPO Financial Information
Garuda Construction and Engineering Limited witnessed a 4% decline in revenue and an 11% decrease in profit after tax (PAT) from the financial year ending on March 31, 2024, compared to March 31, 2023.
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 Apr 2024 |
|---|---|---|---|---|
| Assets | 111.03 | 176.35 | 228.49 | 234.84 |
| Revenue | 77.03 | 161.02 | 154.47 | 11.88 |
| Profit After Tax | 18.78 | 40.8 | 36.44 | 3.5 |
| Net Worth | 41.79 | 82.61 | 119.01 | 122.51 |
| Reserves and Surplus | 29.34 | 70.13 | 81.65 | 85.16 |
| Total Borrowing | 11.99 | 0.19 | 0.15 | 0.15 |
Key Performance Indicator – Garuda Construction and Engineering IPO
| KPI | Values |
|---|---|
| Market Cap | ₹ 883.9 Cr. |
| EPS | ₹4.87 |
| P/E (x) | 19.49 |
| ROE | 36.14% |
| ROCE | 46.69% |
| RoNW | 30.62% |
| P/BV | 5.97 |
Objects of the Issue:
The company plans to use the raised funds for the following purposes:
- Meeting working capital requirements
- Covering general corporate expenses
- Funding potential unidentified inorganic acquisitions
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
