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Garuda Construction and Engineering is preparing for its initial public offering (IPO), set to open for subscription early next week. The offering includes a fresh equity sale and an offer for sale, with a price range of INR 92-95 per share. The company boasts an order book of 12 ongoing projects, including high-value residential developments. For the financial year ending early 2024, Garuda reported a 4% decline in revenue and a decrease in profit after tax. Corpwis Advisors is the lead manager for the IPO, with Link Intime India as the registrar.
The initial public offering (IPO) of Garuda Construction and Engineering is set to open for subscription early next week. The offering includes a fresh equity sale worth INR 173 crore and an offer for sale (OFS) of INR 90 crore, and will close later in the same week. Advertisement
The company has set a price range of INR 92-95 per share, with investors able to bid for 157 shares in a single lot. In this IPO, around 35% of the shares are reserved for retail investors, 50% for qualified institutional buyers, and the remaining 15% for non-institutional investors.
The proceeds from the fresh issue, amounting to up to INR 100 crore, will be allocated towards funding working capital requirements and general corporate purposes, which could include potential inorganic acquisitions.
Garuda Construction offers comprehensive civil construction services for residential, commercial, and industrial projects, along with additional support for infrastructure and hospitality developments.
Their civil construction services cover the construction of residential, hospitality, industrial, infrastructural, and commercial buildings, as well as concrete and composite steel structures essential for civil construction. The company also extends its services to infrastructure and hospitality projects.
Garuda Construction's expertise includes building concrete structures and composite steel frameworks. In addition to this, it provides operation and maintenance (O&M), mechanical, electrical, and plumbing (MEP) services, as well as finishing works. This allows the company to deliver a full range of civil construction and supplementary services under one roof.
The Mumbai-based company currently has an order book featuring 12 ongoing projects, with seven of them having a contract value exceeding INR 100 crore each. These include a residential development named 'Trinity Oasis' in Thane, as well as construction and beautification work for residential projects such as 'Garuda Zenith' and later 'Garuda Shatrunjay' in Mumbai, among others.
For the financial year ending in early 2024, the company's revenue from operations saw a 4% year-on-year decline, amounting to INR 151 crore. Additionally, profit after tax dropped to INR 36.43 crore from INR 40.79 crore in the previous year. Corpwis Advisors is acting as the sole book-running lead manager for the IPO, while Link Intime India is the registrar of the offer. The equity shares are set to be listed on both the BSE and NSE.
Garuda Construction and Engineering's upcoming IPO presents a significant opportunity for investors, showcasing the company's diverse portfolio and robust order book. Despite a slight decline in revenue and profit, the firm's commitment to delivering comprehensive civil construction services positions it well for future growth. The strategic allocation of IPO proceeds towards working capital and potential acquisitions reflects a forward-thinking approach to enhancing operational capabilities. With reputable advisors on board, Garuda aims to strengthen its market presence, making this IPO a noteworthy event in the construction sector.
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