₹ 14915 / 157 shares
IPO Details
RHP/DRHPIssue Date
08 Oct - 10 Oct'24
Investment/lot
₹ 14915
Price Range
92 - 95
Lot Size
157
IPO Size
₹ 264.10 Cr
IPO Listing Details
Listing On
15 Oct'24
Issue Price
95
Listed Price
₹ 103.2
Retail Gain/Listing Gain
â–²10.53%
IPO Timeline
Garuda Construction and Engineering Company Background
Garuda Construction and Engineering Limited is a growing civil construction company. The company provides end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects along with additional services for infrastructure and hospitality projects. The company also provides concrete building structures and composite steel structures, which are required for the civil construction.
Objectives of the IPO:
- Fund working capital requirements
- General Corporate Expenses and unidentified inorganic acquisitions
Potential benefits for investors:
Garuda Construction and Engineering Limited comes with a strong order book. Many of the projects have a valuation of over ₹100 crore. By applying for the IPO, the investors can get a slice of a company that has a strong customer base and an established track record.
Garuda Construction and Engineering Limited has strong operating margins, revenue from operations, higher than the industry average and is practically debt-free. By investing in the IPO, the investors can be a part of a company that is growing and exceptional financials.
Garuda Construction and Engineering Key Financials
| Particulars | As of March 2024 | As of March 2023 | As of March 2022 |
|---|---|---|---|
Revenue from Operations | 15,417.83 | 16,068.76 | 7,702.08 |
Total Equity and Liability | 22,848.53 | 17,634.96 | 11,103.42 |
Return on average net worth | (30.16%) | (46.15%) | (29.58%) |
All Financial Information about Garuda Construction and Engineerings
Presentation of key financial metrics and indicators to assess Garuda Construction and Engineerings financial health.
Particulars (in Rs. million)
Particulars (in Rs. million)
Promoters of Garuda Construction and Engineerings
As on the date of this red herring prospectus, the company’s promoter is Pravinkumar Brijendra kumar Agarwal, who is the Managing director and Chairman. He is the promoter of PKH Ventures Limited and Makindian Township Private Limited. The company’s board comprises of 5 directors. Their details are given below:
| Name | Designation |
|---|---|
Mohit Kapoor | Whole-Time Director |
Deepak Kumar | Non-executive Director |
Priyanka Yadav | Independent Director |
Rajvirendra Singh Rajpurohit | Independent Director |
Venkateshkumar K | Independent Director |
Garuda Construction and Engineerings IPO Strengths
Exclusive and focused business approach.
The primary focus of the company is civil construction of residential and commercial buildings. They are now venturing into industrial and infrastructural projects. This focussed business approach has enabled them to build a team of people with the right knowledge of relevant domain, skill and experience and enabled them to establish systems and processes that are aligned with specific requirements of their business operations.
Established and proven track record
The company constructed the Golden Chariot Vasai Hotel & Spa. They also renovated the Golden Chariot, the Boutique Hotel at Mumbai in the year 2015. Between 2010 and 2017, the company completed key projects in MMR, Karnataka and Tamil Nadu. The company also completed the construction of the Delhi Police Headquarters for the appointed concessionaire i.e., M/s. Eternal Building Assets Private Limited, a group company, on EPC turnkey basis in April, 2021. These projects and a track record of on-time completion and quality construction has given us the necessary impetus to build, own and operate our own projects in the construction industry.
Visible growth through increasing order book
As on the date of filling Red Herring Prospectus, the contract value of their ongoing and upcoming projects amounted to a total of ₹1,40,827.44 lakhs. With projects spread across the MMR, Arunachal Pradesh, Karnataka, Rajasthan and Punjab, the increasing number of construction work and projects helps the company maintain the momentum of their growth and enhanced reputation.
Garuda Construction and Engineering Limited IPO Risk Factors
- The company’s total revenue comes from10 clients, mainly their promoter related entities and group companies. The loss of any of our significant clients may hurt their business.
- The construction industry is cyclical and sensitive to changes in the economy and this could have a significant impact on our operations and financial results.
- The company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could hurt their business.
Key Strategies of Garuda Construction and Engineering Limited
Insight into Garuda Construction and Engineering Limited's future plans, growth strategies, and how it intends to strengthen its market position post-IPO.
- Thrust into the Construction and Development segment
- Increase their focus on and execute a greater number of projects on a lock-and-key basis
- Continue focusing on timely completion:
Conclusion
Garuda Construction and Engineering Limited has many strengths including a strong order book, high operating margins and debt-free operations. However, the real estate cycle and the heavy dependence on related-party contracts and the real estate market of MMR may pose a challenge. If you want to invest in the IPO, ensure you do your homework and asses the risks and challenges thoroughly.
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
Garuda Construction and Engineering IPO FAQs
When is Garuda Construction and Engineering IPO listing date?
Garuda Construction and Engineering IPO will list on 2024-10-15.
What is the issue size of Garuda Construction and Engineering IPO?
264.10 is the issue size of Garuda Construction and Engineering IPO.
What is the minimum lot size required for Garuda Construction and Engineering IPO?
The minimum lot size is 157 shares and the investment required is ₹14915.
What is the price band of the Garuda Construction and Engineering IPO?
The price band of Garuda Construction and Engineering IPO is ₹92 to ₹95.
Where can I read more about Garuda Construction and Engineering business?
You can read more about Garuda Construction and Engineering and its IPO from the company’s red herring prospectus (RHP) here.
What is the Garuda Construction and Engineering Limited IPO?
The Garuda Construction and Engineering Limited IPO has an issue size of ₹264.10 crores. The IPO opens for subscription on 08/10/2024 and closes on 10/10/2024.
Who is the Registrar for Garuda Construction and Engineering Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
