About Garuda Construction and Engineering Limited IPO
Garuda Construction and Engineering is launching an IPO with a total issue size of ₹264.10 crores. The IPO consists of a fresh issue of 1.83 crore shares, raising ₹173.85 crores, along with an offer for sale of 0.95 crore shares, amounting to ₹90.25 crores.
The IPO will open for subscription from October 8, 2024, and close on October 10, 2024. The allotment of shares is expected to be finalized on Friday, October 11, 2024, with the listing anticipated on BSE and NSE on Tuesday, October 15, 2024.
The price band for the Garuda Construction and Engineering IPO is set at ₹92 to ₹95 per share. The minimum application lot size is 157 shares, requiring retail investors to invest at least ₹14,915. For sNII (Small Non-Institutional Investors), the minimum investment is 14 lots (2,198 shares), totaling ₹208,810, and for bNII (Big Non-Institutional Investors), it’s 68 lots (10,676 shares), amounting to ₹1,014,220.
Corpwis Advisors Private Limited is serving as the book-running lead manager for this IPO, with Link Intime India Private Ltd as the registrar.
Reservation for the Garuda Construction and Engineering IPO
| 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 |
Lot Size for the Garuda Construction and Engineering IPO
Investors can place bids starting with a minimum of 157 shares, with increments in multiples of this lot size. The table below outlines the minimum and maximum investment amounts for retail investors and HNIs, both in terms of shares and total investment.
| 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 |
Financial Information of Garuda Construction and Engineering Limited (Amount in ₹ Crore)
Garuda Construction and Engineering Limited experienced a 4% decline in revenue and an 11% decrease in profit after tax (PAT) between the financial years ending March 31, 2024, and March 31, 2023.
| Key Financial Performance | FY24 | FY23 | FY22 |
| Revenue from operations | 154.18 | 160.69 | 77.02 |
| Total Revenue | 154.47 | 161.02 | 77.03 |
| EBITDA | 50.09 | 55.99 | 27.17 |
| EBITDA margin as of revenue from operations (%) | 32.49% | 34.85% | 35.27% |
| PAT | 36.44 | 40.8 | 18.78 |
| PAT Margin (%) | 23.63% | 25.39% | 24.39% |
| Net Debt | – | – | 5.11 |
| Net Worth | 119.01 | 82.61 | 41.79 |
| Inventories | 7.38 | 6.6 | 2.7 |
| Trade Receivables | 182.56 | 76.98 | 30.17 |
| ROE (%) | 36.14% | 65.59% | 57.97% |
| ROCE (%) | 46.69% | 70.85% | 40.46% |
Promoter Holding for Garuda Construction and Engineering IPO
The company’s promoters, Pravinkumar Brijendra Kumar Agarwal, PKH Ventures Limited, and Makindian Township Private Limited, hold a pre-issue shareholding of 96.81%.
Key Performance Indicator of Garuda Construction and Engineering Limited
Garuda Construction and Engineering IPO has a market capitalization of ₹883.9 crore.
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 |
Peer Comparison for Garuda Construction and Engineering Limited IPO
Garuda Construction & Engineering boasts a solid Return on Net Worth (RoNW) of 36.14%, while PSP Projects and Ahluwalia Contracts lead with impressive Earnings Per Share (EPS) at ₹34.16 and ₹55.95, respectively. In contrast, B L Kashyap faces challenges with a high Price-to-Earnings (P/E) ratio of 48.67.
| Company | Face Value per Equity Share (₹) | P/E Ratio | EPS (₹) | RoNW (%) | NAV (₹) |
| Garuda Construction & Engineering Ltd | 5 | NA | 4.87 | 36.14 | 15.92 |
| PSP Projects Limited | 10 | 20.00 | 34.16 | 17.73 | 254.13 |
| Capacite Infraprojects Limited | 10 | 23.61 | 16.09 | 9.35 | 223.44 |
| Vascon Engineers Limited | 10 | 22.66 | 3.05 | 11.32 | 44.33 |
| Ahluwalia Contracts (India) Limited | 2 | 22.97 | 55.95 | 17.14 | 238.84 |
| B L Kashyap & Sons Limited | 1 | 48.67 | 2.33 | 13.38 | 22.02 |
Strengths of Garuda Construction and Engineering Limited IPO
- The company has built a strong track record in executing a wide range of construction projects, including residential, hospitality, and commercial developments.
- Quality system managers are assigned to oversee regular inspections and testing at each project site, ensuring effective project management and efficient execution.
- With solid financial performance and a healthy balance sheet, the company has consistently reduced its debt-equity ratio, reaching an almost debt-free status over the past two years.
- The total contract value of ongoing and upcoming projects stands at ₹1,40,827.44 lakhs, with projects spread across the Mumbai Metropolitan Region (MMR), Arunachal Pradesh, Karnataka, Rajasthan, and Punjab.
Risks of Garuda Construction and Engineering Limited IPO
- The company derives 100% of its total revenue from its top 10 clients, primarily consisting of promoter-related entities and group companies. The loss of any key client could negatively impact its business prospects.
- The company faces challenges in growth due to its limited experience in engaging with unrelated third-party entities. Successfully establishing itself as a developer or contractor outside its promoter group and associated companies is crucial.
- The cyclical nature of the construction industry makes it sensitive to economic fluctuations, which could significantly affect the company’s operations and financial performance.
- A previous IPO filed by the promoter group, PKH Venture Limited, was not subscribed, resulting in its withdrawal.
- Substantial working capital is essential for the business’s operations. Insufficient cash flows to cover these working capital needs could adversely affect operational outcomes.
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: 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: linkintime.co.in
About Garuda Construction and Engineering Limited
Founded in 2010, Garuda Construction and Engineering is a leading civil construction firm that delivers comprehensive construction solutions across various project types. Its portfolio encompasses residential, commercial, and mixed-use buildings, along with infrastructure and industrial projects. The company also specializes in hospitality projects. In the civil construction sector, Garuda is engaged in constructing residential, hospitality, industrial, infrastructural, and commercial buildings. Additionally, it oversees the construction of concrete and composite steel structures, which are vital to civil engineering. The company offers operations and maintenance (O&M) services, as well as mechanical, electrical, and plumbing (MEP) services, and finishing work, all of which are critical components of its construction capabilities.
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Disclaimer:
The information provided on this page regarding upcoming IPOs is for informational purposes only and should not be construed as financial advice. We do not endorse or recommend any particular investment or financial strategy. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. We are not responsible for any financial losses or damages that may arise from reliance on the information presented here.
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