Garuda Construction and Engineering Ltd, a civil construction company, is set to open its initial public offering (IPO) on October 8, 2024. The IPO will close on October 10, 2024, with a price band fixed between ₹92 and ₹95 per share. The company aims to raise ₹264.10 crore through this offering.
Key IPO Details
- Price Band: ₹92 to ₹95 per equity share
- Issue Size: ₹264.10 crore, with a fresh issue of up to 1.83 crore shares amounting to ₹173.85 crore and an offer for sale of 95 lakh shares aggregating up to ₹90.25 crore.
- Lot Size: Investors can bid for a minimum of 157 equity shares in one lot, and multiples thereof.
- Allocation: 50% reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs).
Utilization of Proceeds
The net proceeds from the fresh issue will be used for the following purposes:
- ₹100 crore towards working capital requirements.
- The remaining balance will go towards general corporate purposes, including unidentified inorganic acquisitions.
Business Overview
Garuda Construction and Engineering is involved in civil construction projects, providing end-to-end solutions for residential, commercial, industrial, and infrastructure projects. The company also provides additional services such as operations and maintenance (O&M), Mechanical, Electrical, and Plumbing (MEP), and finishing works as part of its offerings.
Financial Performance
The company has shown consistent financial growth over the years:
- Revenue: Increased from ₹77 crore in FY 2022 to ₹154 crore in FY 2024, at a CAGR of 26.03%.
- Profit After Tax: Grew from ₹18.78 crore in FY 2022 to ₹36 crore in FY 2024, at a CAGR of 24.72%.
- For the month ended April 2024, revenue stood at ₹11.87 crore, with profit after tax at ₹3.50 crore.
IPO Timeline
- Allotment Date: Expected to be finalized on October 11, 2024.
- Listing Date: Tentatively set for October 15, 2024, on both BSE and NSE.
Other Details
- Grey Market Premium (GMP): Currently nil, indicating no premium in the unlisted market. However, GMP is subject to fluctuations and is an informal indicator.
- Lead Manager & Registrar: Corpwis Advisors is the sole book-running lead manager, while Link Intime India is the registrar for the IPO.
Garuda Construction and Engineering’s IPO offers investors an opportunity to invest in a growing civil construction business with a diverse project portfolio and consistent financial performance.
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