Garuda Construction and Engineering IPO to open on October 8: IPO size, price band, lot size and more

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

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  • 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.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.