Hi wealthgainer.in Readers, The Garuda Construction and Engineering Limited IPO is scheduled to open for subscription from October 8, 2024, to October 10, 2024. This IPO offers a substantial opportunity for investors interested in the construction sector, as Garuda Construction and Engineering Limited has established a solid foundation in the field.
With this IPO, the company aims to raise significant funds to support its expansion and growth. This article will provide a detailed analysis of the IPO, its strengths, company financials, and whether you should consider investing in it.
Overview of Garuda Construction and Engineering Limited
Founded in 2010, Garuda Construction and Engineering Limited has grown into a prominent construction company in India, specializing in residential, commercial, infrastructure, and industrial projects.
The company offers comprehensive services, including mechanical, electrical, and plumbing (MEP) services, operation and maintenance (O&M), and finishing works. The company’s track record includes notable projects like Golden Chariot Vasai Hotel & Spa, which showcases its ability to handle complex and large-scale construction ventures.
Garuda Construction and Engineering IPO Listing Dates
The following table provides a snapshot of the key details related to Garuda Construction and Engineering Limited’s IPO:
| IPO Particulars | Details |
| IPO Date | October 8, 2024, to October 10, 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 of ₹5 (aggregating up to ₹90.25 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Pre-Issue Shareholding | 74,741,742 |
| Post-Issue Shareholding | 93,041,742 |
Garuda Construction and Engineering IPO Reservation Information
The IPO will reserve shares for different categories of investors as per the following table:
| Investor Category | Shares Offered |
| QIB (Qualified Institutional Buyers) | Not more than 50.00% of the Net Offer |
| Retail Investors | Not less than 35.00% of the Net Issue |
| NII (Non-Institutional Investors) | Not less than 15.00% of the Net Offer |
IPO Timeline (Tentative Schedule)
| Event | Date |
| IPO Open Date | October 8, 2024 |
| IPO Close Date | October 10, 2024 |
| Basis of Allotment Finalization | October 11, 2024 |
| Initiation of Refunds | October 14, 2024 |
| Credit of Shares to Demat Account | October 14, 2024 |
| Listing Date | October 15, 2024 |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on October 10, 2024 |
Garuda Construction and Engineering Limited IPO GMP today
| Date | GMP Price | Expected Listing Price |
| 06-10-2024 | ₹22 | ₹117 (23.16%) |
| 05-10-2024 | ₹18 | ₹113 (18.95%) |
Calculate SBI SIP – State Bank of India SIP Calculator
Garuda Construction and Engineering IPO Lot Size and Investment
Retail investors and high net worth individuals (HNIs) can invest in different quantities of shares, as shown in the table below:
| Investor Type | 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 | ₹1,014,220 |
Promoters and Shareholding
The promoters of Garuda Construction and Engineering Limited include Pravinkumar Brijendra Kumar Agarwal, PKH Ventures Limited, and Makindian Township Private Limited. Their pre-issue and post-issue shareholding details are as follows:
| Shareholding | Percentage |
| Pre-Issue | 96.81% |
| Post-Issue | To be updated |
Company Strengths
Garuda Construction and Engineering Limited stands out due to its focused business approach and solid track record. The company’s strengths include:
1. Focused Business Strategy:
Specializing in residential, commercial, and industrial projects, with plans to expand further into infrastructure development.
2. Established Track Record:
Successful completion of notable projects such as Golden Chariot Vasai Hotel & Spa and residential projects in the MMR region.
3. Project Management Excellence:
Proven project management and execution capabilities across various regions in India.
4. Strong Financials:
Robust financial performance and balance sheet, showcasing stable revenue streams and profitability.
5. Experienced Leadership:
The company’s promoters, directors, and management team bring substantial experience and expertise.
6. Expanding Order Book:
As of September 28, 2024, the company has a strong order book valued at ₹1,40,827.44 lacs, demonstrating its ongoing growth trajectory.
Company Financials
The financial health of Garuda Construction and Engineering Limited, as restated, is outlined in the following table:
| Period Ended | 30 Apr 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets (₹ Cr) | 234.84 | 228.49 | 176.35 | 111.03 |
| Revenue (₹ Cr) | 11.88 | 154.47 | 161.02 | 77.03 |
| Profit After Tax (₹ Cr) | 3.5 | 36.44 | 40.8 | 18.78 |
| Net Worth (₹ Cr) | 122.51 | 119.01 | 82.61 | 41.79 |
| Reserves and Surplus (₹ Cr) | 85.16 | 81.65 | 70.13 | 29.34 |
| Total Borrowings (₹ Cr) | 0.15 | 0.15 | 0.19 | 11.99 |
Key Performance Indicators (KPIs)
Below are the key performance indicators of Garuda Construction and Engineering Limited as of March 31, 2024:
| KPI | Value |
| Return on Equity (ROE) | 36.14% |
| Return on Capital Employed (ROCE) | 46.69% |
| Return on Net Worth (RoNW) | 30.62% |
| Price to Book Value (P/BV) | 5.97 |
| PAT Margin | 23.63% |
Earnings Per Share (EPS) and Price-to-Earnings (P/E) Ratio
| Pre IPO | Post IPO |
| EPS (₹) | 4.87 |
| P/E (x) | 19.49 |
Note: The pre-IPO EPS is calculated based on pre-issue shareholding, while post-issue EPS is based on post-issue shareholding and annualized earnings.
Objects of the Issue
The funds raised through the Garuda Construction and Engineering IPO will be utilized for:
1. Working Capital Requirements
2. General Corporate Expenses
3. Unidentified Inorganic Acquisitions
Should You Invest in Garuda Construction and Engineering IPO?
While Garuda Construction and Engineering Limited presents a strong case for investment based on its focused business approach, proven track record, and solid financials, it’s important to consider the following factors before making a decision:
- The company has seen a slight decline in revenue and profit after tax (PAT) between FY 2023 and FY 2024, which might be a concern for some investors.
- The price band of ₹92 to ₹95 per share, along with the P/E ratio, places the company in a competitive valuation range. Investors should assess whether the potential growth in the construction sector justifies the valuation.
- The company’s strong order book and diversified project portfolio offer visibility for future growth, which could benefit long-term investors.
Final Thoughts
Garuda Construction and Engineering Limited’s IPO presents an exciting opportunity for investors looking to tap into the Indian construction sector. The company’s strengths, such as its established track record, solid project management, and financial stability, make it an attractive prospect. However, investors should carefully assess the valuation and market conditions before making a final decision.
Garuda Construction and Engineering IPO Registrar Contact Details
| Registrar | Link Intime India Private Ltd |
| Phone | +91-22-4918 6270 |
| garudaconstructions.ipo@linkintime.co.in | |
| Website | Linkintime |
Before investing, consult with a financial advisor to determine whether this IPO aligns with your investment goals.
Information Source – Garuda Construction and Engineering Limited
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