The Garuda Construction and Engineering IPO presents an excellent opportunity for those looking to explore IPO investment options. This upcoming IPO is a book-built issue valued at ₹264.10 crores, comprising a fresh issue of 1.83 crore shares, aggregating ₹173.85 crores, and an offer for sale of 0.95 crore shares, worth ₹90.25 crores.
Investors can subscribe between 8th October and 10th October 2024, with shares priced in a band of ₹92 to ₹95 per share. The minimum investment for retail investors is ₹14,915, with larger investment options available for sNII and bNII categories. With a tentative listing on the BSE and NSE on 15th October 2024, Garuda Construction and Engineering is a key contender among upcoming IPOs in the Indian market.
Garuda Construction and Engineering Limited's IPO offers investors an opportunity to participate in its growth. Below are the key details, including price band and investment requirements for retail and institutional investors.
| Garuda Construction and Engineering Limited IPO date | October 8, 2024 to October 10, 2024 |
| Face value | ₹5 per share |
| Lot size | 157 Shares |
| Price band | ₹92 to ₹95 per share |
| Share holding pre issue | 74,741,742 |
| Share holding post issue | 93,041,742 |
| Issue type | Book Built Issue IPO |
| Listing at | BSE, NSE |
| Total issue size | 27,800,000 shares(aggregating up to ₹264.10 Cr) |
| Offer for sale | 9,500,000 shares of ₹5(aggregating up to ₹90.25 Cr) |
| Fresh issue | 18,300,000 shares(aggregating up to ₹173.85 Cr) |
Garuda Construction and Engineering Limited IPO is scheduled with key dates including the opening, closing, allotment, and listing. Below is a detailed timeline to help investors track important milestones for this IPO.
| 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 | By 5 PM on October 10, 2024 |
Founded in 2010, Garuda Construction and Engineering Limited is a key player in the construction industry, offering services for residential, commercial, industrial, infrastructure, and hospitality projects. With a proven track record, the company has completed notable projects such as the Golden Chariot Vasai Hotel & Spa and several residential developments in the MMR region.
Their strengths lie in focused business operations, strong project management capabilities, and solid financial performance. As of 30th April 2024, they reported revenue of ₹1,187.50 lakhs, with an order book value of ₹1,40,827.44 lakhs as of September 2024. With its upcoming IPO, Garuda aims to strengthen its position, making it a compelling option for those exploring IPO investment opportunities among the upcoming IPOs.
Garuda Construction and Engineering Limited's financial performance saw a slight decline, with revenue decreasing by 4% and profit after tax (PAT) dropping by 11% between the financial years ending 31st March 2024 and 31st March 2023.
The Garuda Construction and Engineering Limited IPO GMP is currently ₹0 as of 3rd October 2024, 08:23 AM. With a price band set at ₹95, the estimated listing price remains at ₹95 per share. This implies an expected percentage gain or loss of 0.00%. Investors looking at the Garuda Construction and Engineering Limited IPO GMP can gauge that no premium or discount is expected based on the current market conditions.
| Period ended | April 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 11.88 | 154.47 | 161.02 | 77.03 |
| Assets | 234.84 | 228.49 | 176.35 | 111.03 |
| Net worth | 122.51 | 119.01 | 82.61 | 41.79 |
| Profit after tax | 3.5 | 36.44 | 40.8 | 18.78 |
| Total borrowing | 0.15 | 0.15 | 0.19 | 11.99 |
| Reserves and surplus | 85.16 | 81.65 | 70.13 | 29.34 |
| Amount in ₹ Crores | ||||
Garuda Construction and Engineering excels in maintaining high construction quality and timely delivery, supported by robust project management capabilities. The company operates with an asset-light model by relying on third-party vendors for modern construction equipment, enhancing cost efficiency and reducing operational risks.
As of the latest reports, Garuda's order book stands at ₹1,40,827.44 lakhs, reflecting strong revenue potential from ongoing and upcoming projects across multiple regions. This approach to asset management strengthens its financial stability while minimising disruptions.
However, the company has faced challenges with negative cash flows from operations, totalling (-₹192.64 lakhs) as of 30th November 2023. This may impact Garuda's financial stability and operational capabilities. Additionally, venturing into new markets poses risks, as 64.61% of ongoing projects are with unrelated entities, exposing the company to potential delays, non-performance, and financial losses that could affect long-term growth.
Investing in the Garuda Construction and Engineering Limited IPO could be a compelling opportunity for those looking into upcoming IPOs. With a market capitalisation of ₹883.9 crore, the company exhibits strong financial indicators, including a Return on Equity (ROE) of 36.14% and a Return on Capital Employed (ROCE) of 46.69%.
The PAT margin stands at a healthy 23.63%, indicating efficient profit generation. While the P/E ratio is projected to rise from 19.49 to 21.03 post-IPO, the earnings per share (EPS) will slightly adjust from ₹4.87 to ₹4.52. Potential investors should weigh these performance metrics against the company's risks, including negative cash flows and project-related uncertainties. Overall, Garuda's strengths in project management and a solid order book suggest a positive outlook for IPO investment.
The Garuda Construction and Engineering IPO is a main-board offering comprising 27,800,000 equity shares with a face value of ₹5, amounting to a total of ₹264.10 crores. The share price is set between ₹92 and ₹95, with a minimum order quantity of 157 shares. This IPO will be open for subscription from 8th October 2024 until 10th October 2024. Link Intime India Private Ltd serves as the registrar for this IPO, and the shares are to be listed on both BSE and NSE.
The lot size for the Garuda Construction and Engineering IPO is 157 shares, requiring a minimum investment of ₹14,915.
The listing date for the Garuda Construction and Engineering IPO has yet to be officially announced. However, the tentative listing date is set for Tuesday, 15th October, 2024.
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