Garuda Construction and Engineering IPO: Key Dates, Price Band, and Listing Details

Garuda Construction and Engineering Limited was founded in 2010 and is a construction company providing comprehensive construction services for residential, commercial, infrastructure, and industrial projects. The company also offers additional services such as operation and maintenance (O&M), mechanical, electrical and plumbing (MEP) services, and finishing works. As of September 28, 2024, the company had 65 permanent employees and an order book value of ₹1,40,827.44 lacs for ongoing and pending projects.

The Objectives of the Issue

Garuda Construction and Engineering Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

1. Working Capital Requirements
2. General Corporate Expenses and Unidentified Inorganic Acquisitions

Highlights of Garuda Construction and Engineering IPO

Garuda Construction and Engineering IPO is set to launch with a book-built issue of ₹264.10 crores. The issue is a combination of fresh issue and offer for sale. Here are the key details of the IPO:

• The IPO opens for subscription on 8th October 2024 and closes on 10th October 2024.
• The allotment is expected to be finalised on 11th October 2024.
• Refunds will be initiated on 14th October 2024.
• Credit of shares to Demat accounts is also expected on 14th October 2024.
• The company will tentatively list on BSE and NSE on 15th October 2024.
• The price band is set at ₹92 to ₹95 per share.
• The fresh issue comprises 1.83 crore shares aggregating to ₹173.85 crores.
• The offer for sale comprises 0.95 crore shares aggregating to ₹90.25 crores.
• The minimum lot size for the application is 157 shares.
• Retail investors need to invest a minimum of ₹14,915.
• The minimum investment for small NII (sNII) is 14 lots (2,198 shares), amounting to ₹208,810.
• The minimum investment for big NII (bNII) is 68 lots (10,676 shares), amounting to ₹1,014,220.
• Corpwis Advisors Private Limited is the book-running lead manager for the IPO.
• Link Intime India Private Ltd serves as the registrar.

Garuda Construction and Engineering IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 10th October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Garuda Construction and Engineering IPO Issue Details/Capital History

Garuda Construction and Engineering IPO is scheduled from 8th October to 10th October 2024, with a price band of ₹92 to ₹95 per share and a face value of ₹5. The total issue size is 2,78,00,000 shares, raising up to ₹264.10 crores through a combination of fresh issue and offer for sale. The IPO will be listed on BSE and NSE. The pre-issue shareholding is 7,47,41,742 shares.

Garuda Construction and Engineering IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 157 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Garuda Construction and Engineering Ltd

Strengths:

• Exclusive and focused business approach in construction
• Established and proven track record in various construction projects
• Strong project management and execution capabilities
• Strong financial performance and healthy balance sheet
• Visible growth through increasing order book
• Experienced promoter, directors, and management team

Weaknesses:

• Dependence on the construction sector
• Limited geographical presence

Opportunities:

• Expansion into new geographical markets
• Diversification into new types of construction projects
• Growing demand for infrastructure development in India

Threats:

• Economic slowdowns affecting the construction industry
• Intense competition in the construction sector
• Regulatory changes impacting the real estate and construction industry

Financial Highlights: Garuda Construction and Engineering Ltd

Below are the financial results for the recent periods:

Garuda Construction and Engineering Limited has shown significant growth over the years, although there was a slight decrease in revenue and profit in FY24 compared to FY23. The company's revenue decreased by 4%, and profit after tax (PAT) dropped by 11% between the financial year ending on 31st March 2024 and 31st March 2023.

Assets have shown strong growth, increasing from ₹11,103.42 lakh in FY22 to ₹23,484.04 lakh as of 30th April 2024, representing a growth of about 111.5% over this period.

Revenue increased substantially from FY22 to FY23, rising from ₹7,702.79 lakh to ₹16,102.41 lakh, a 109% increase. However, it decreased slightly to ₹15,446.88 lakh in FY24.

The company's profitability has improved significantly since FY22. Profit After Tax increased from ₹1,878.22 lakh in FY22 to ₹3,643.53 lakh in FY24, representing a growth of 93.9% over two years, despite the slight decrease from FY23.

Net Worth has shown strong growth, increasing from ₹41,79.04 lakh in FY22 to ₹12,250.81 lakh as of 30th April 2024, a substantial growth over this period.

Total Borrowings have decreased significantly from ₹1,199.02 lakh in FY22 to ₹14.82 lakh as of 30th April 2024, which represents a decrease of about 98.8% over this period. This substantial reduction in borrowings, coupled with increasing profitability, suggests improving financial health.

The company's financial performance shows a strong growth trend, particularly from FY22 to FY23, with a slight moderation in FY24. The significant increase in Net Worth and substantial decrease in borrowings indicate a strengthening financial position. Investors should consider these trends, the company's growth strategy, and the evolving construction sector when evaluating the IPO.