October 7, 2024
New Delhi, India
Garuda Construction and Engineering IPO
Garuda Construction and Engineering is set to open its Initial Public Offering (IPO) for subscription on Tuesday, October 8, offering investors the chance to participate in the civil construction sector. The company provides comprehensive construction services across various sectors, including residential, commercial, and infrastructure projects. The IPO will remain open until Thursday, October 10.
Key Financial Highlights
Garuda Construction has shown significant growth in recent years, with its revenue increasing from ₹7,702.08 lakhs in fiscal 2022 to ₹15,417.83 lakhs in fiscal 2024, reflecting a CAGR of 26.03%. The company’s profit after tax also grew from ₹1,878.22 lakhs in fiscal 2022 to ₹3,643.53 lakhs in fiscal 2024, with a CAGR of 24.72%.
Garuda Construction IPO Details
- Price Band: ₹92 to ₹95 per equity share of face value ₹5
- Lot Size: 157 equity shares and multiples thereafter
- IPO Dates: Opens on October 8, closes on October 10
- Fresh Issue: 1.83 crore equity shares
- Offer for Sale (OFS): 95 lakh equity shares by promoter PKH Ventures Ltd
- Anchor Investors Allocation: Scheduled for Monday, October 7
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Competitive Landscape
In its Red Herring Prospectus (RHP), Garuda Construction lists peers such as PSP Projects Ltd (P/E 20), Capacite Infraprojects Ltd (P/E 23.61), and B L Kashyap & Sons Ltd (P/E 48.67). Garuda leads its industry in terms of operating profit margin, standing at 34.80%, well above the peer average of 16.90%, according to the CareEdge Report.
Use of IPO Proceeds
The proceeds from the fresh issue will be used to fund operational requirements and for general corporate purposes, which may include non-organic acquisitions.
Important Dates
- Basis of Allotment: Expected on Friday, October 11
- Refunds Initiated: Monday, October 14
- Shares Credited to Demat: Same day as refunds
- Listing on BSE & NSE: Anticipated on Tuesday, October 15
IPO Reservation
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
- Retail Investors: 35%
Garuda Construction IPO GMP Today
The Grey Market Premium (GMP) for Garuda Construction IPO is +₹10 as of Monday at 2 P.M IST, according to investorgain.com, indicating investor interest ahead of the listing.
Lead Manager and Registrar
- Lead Manager: Corpwis Advisors Private Ltd
- Registrar: Link Intime India Private Ltd
This IPO presents a growth opportunity for investors looking to participate in the civil construction sector, with a strong financial track record and a competitive position in the market.
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