Garuda Construction and Engineering IPO: Key Details, Issue Dates, and Everything You Should Know
Garuda Construction and Engineering Limited is set to launch its highly anticipated IPO, offering a mix of fresh issues and an offer for sale. This IPO provides an opportunity for investors to participate in a company that has a strong track record in the construction and infrastructure sectors. Here’s a breakdown of all the essential details regarding the Garuda Construction and Engineering IPO, including issue dates, price bands, and key financials.
Garuda Construction and Engineering IPO Key Details
- IPO Opening Date: October 8, 2024
- IPO Closing Date: October 10, 2024
- Allotment Finalization Date: October 11, 2024
- Listing Date: October 15, 2024 (BSE & NSE)
- IPO Price Band: ₹92 to ₹95 per share
- Minimum Lot Size: 157 shares
- Minimum Retail Investment: ₹14,915
- Minimum sNII Investment: ₹208,810 (14 lots, 2,198 shares)
- Minimum bNII Investment: ₹1,014,220 (68 lots, 10,676 shares)
- Issue Size: ₹264.10 crores (Fresh Issue of 1.83 crore shares totaling ₹173.85 crores and Offer for Sale of 0.95 crore shares amounting to ₹90.25 crores)
About Garuda Construction and Engineering Limited
Founded in 2010, Garuda Construction and Engineering Limited provides comprehensive construction services across multiple sectors, including residential, commercial, industrial, and infrastructure projects. Additionally, the company offers specialized services such as operation and maintenance (O&M), mechanical, electrical, and plumbing (MEP) services, and finishing works for various construction projects.
Key Strengths
- Focused Business Approach: The company’s expertise lies in the construction of residential and commercial buildings, with expansions into industrial and infrastructure projects.
- Proven Track Record: Garuda has a history of successfully completing notable projects such as the Golden Chariot Vasai Hotel & Spa and Golden Chariot Boutique Hotel. Its projects extend across the MMR region, Karnataka, and Tamil Nadu.
- Project Management Capabilities: The company is known for efficient project execution and strong management.
- Financial Strength: Garuda's strong financial performance and balance sheet demonstrate its ability to maintain stability and growth. The company recorded Revenue from Operations of ₹1,187.50 crores for the period ending April 30, 2024.
- Growing Order Book: As of September 28, 2024, the company’s order book stands at ₹1,40,827.44 crores, with projects across multiple regions including MMR, Arunachal Pradesh, Karnataka, Rajasthan, and Punjab.
- Experienced Management: The company's leadership is well-versed in the construction industry, guiding Garuda through substantial growth and success.
As of September 28, 2024, the company has 65 permanent employees, contributing to its efficient operations.
Garuda Construction and Engineering Limited Financial Overview
While Garuda Construction and Engineering has experienced a slight dip in revenue and profit, the company maintains a healthy balance sheet and strong net worth. Here’s a detailed look at the company's financials:
| Period Ended | 30 Apr 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | ₹234.84 crore | ₹228.49 crore | ₹176.35 crore | ₹111.03 crore |
| Revenue | ₹11.88 crore | ₹154.47 crore | ₹161.02 crore | ₹77.03 crore |
| Profit After Tax | ₹3.50 crore | ₹36.44 crore | ₹40.80 crore | ₹18.78 crore |
| Net Worth | ₹122.51 crore | ₹119.01 crore | ₹82.61 crore | ₹41.79 crore |
| Reserves | ₹85.16 crore | ₹81.65 crore | ₹70.13 crore | ₹29.34 crore |
| Total Borrowing | ₹0.15 crore | ₹0.15 crore | ₹0.19 crore | ₹11.99 crore |
Objects of the Garuda Construction and Engineering IPO
The proceeds from the IPO will be used to achieve the following objectives:
- Working Capital Requirements: The company aims to boost its working capital to support its ongoing and future projects.
- General Corporate Expenses: The company plans to utilize part of the funds for general business purposes.
- Inorganic Acquisitions: Garuda plans to explore and invest in strategic acquisitions to enhance its market presence and capabilities.
Conclusion
The Garuda Construction and Engineering IPO presents an opportunity to invest in a well-established construction company with a diversified portfolio of projects. Despite a slight decline in revenue, the company’s robust order book and strategic business approach promise long-term growth. The IPO opens on October 8, 2024, and closes on October 10, 2024, providing potential investors a window to invest in a growing player within the infrastructure sector.
As always, it's crucial for investors to carefully assess the company’s financial performance and market conditions before making any investment decisions.