Garuda Construction and Engineering IPO

Garuda Construction and Engineering IPO Details, Financials, Peers

Garuda Construction and Engineering IPO will open on October 8, 2024, and its bidding will close on October 10, 2024. It is a Mumbai-based EPC (Engineering, Procurement, and Construction) company involved in the end-to-end construction of residential, commercial, infrastructure, and industrial projects and providing related services. In this blog, we’ll get into the details of Garuda Construction and Engineering Limited IPO, its key financial metrics, and the peer comparison.

Garuda Construction and Engineering IPO Date 2024

Here are the important dates to know about this IPO:

  • Bidding Opening Date: October 8, 2024
  • Bidding Closing Date: October 10, 2024
  • Allotment Date: October 11, 2024
  • Initiation of Refunds (in case of less or no allotment): October 14, 2024
  • Shares Credited to Your Demat Account: October 14, 2024
  • Listing Date: October 15, 2024
  • Anchor Investor Bidding Date: October 7, 2024

Garuda Construction and Engineering IPO Details

Its total issue size is ₹264.10 crores which includes the fresh issue of ₹173.85 crores and offer for sale of ₹90.25 crores.

Here are the key details of this IPO:

  • Garuda Construction and Engineering IPO Price Band: ₹92 to ₹95 per share
  • Face Value: ₹5 per share
  • Lot Size: 157 Shares
  • Total Issue Size and Amount: 2,78,00,000 shares (amounting to ₹264.10 crores)
  • Fresh Issue Size and Amount: 1,83,00,000 shares (amounting to ₹173.85 crores)
  • OFS Size and Amount: 95,00,000 shares of ₹5 per share (amounting to ₹90.25 crores)
  • Listing On Exchange: NSE and BSE

Garuda Construction and Engineering IPO Proceeds

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From the total IPO proceeds that the company will generate, ₹100 crores has been kept aside for working capital requirements. The remaining is for other corporate needs covering unspecified inorganic acquisitions of another company.

Garuda Construction and Engineering IPO Reservations

Here are the details of Garuda Construction and Engineering IPO reservations to different investors:

  • For retail investors: Minimum of 35% of the net issue
  • For QIBs: Maximum of 50% of the net offer
  • For NIIs: Maximum of 15% of the net offer

Garuda Construction and Engineering Lot Size

Garuda Construction and Engineering IPO lot size is 157 shares and bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:

Applicant Type Lot Size Number of Shares Amount (in ₹)
Retail (Min) 1 157 14,915
Retail (Max) 13 2,041 1,93,895
S-HNI (Min) 14 2,198 2,08,810
S-HNI (Max) 67 10,519 9,99,305
B-HNI (Min) 68 10,676 10,14,220

Garuda Construction and Engineering IPO Promoter Holding

The promoters of the company are:

  • Mr. Pravin Kumar Brijendra Kumar Agarwal
  • PKH Ventures Limited
  • Makindian Township Private Limited

PKH Ventures Limited is the selling shareholder in this IPO.

Garuda Construction and Engineering: Company Overview

Garuda Construction and Engineering is a civil construction and engineering company started in 2010. The company is involved in the construction of residential, hospitality, industrial, and commercial buildings. From detailed route surveys, and designing to resource mobilization and construction activities, all end-to-end work is handled by them.

Currently, the company is working on 6 residential projects, 2 commercial projects, 1 industrial project, and 1 infrastructure project. As of September 28, 2024, the company’s order book is valued at around ₹1,408 crores. Out of the current 12 ongoing projects, 7 projects have a contract value of more than ₹100 crores. In the ongoing projects basket, residential constitutes the 46% majority share.

The company’s key strengths are: an exclusive and focused approach, a proven business track record, strong project management capabilities, consistent financial performance, a strong order book, and an experienced management team.

Garuda Construction and Engineering Limited Financials

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Garuda Construction and Engineering’s key financial metrics for different periods are as follows:
Period Ended 30 Apr 2024 31 Mar 2024 31 Mar 2023 YoY Change
Revenue 11.88 154.47 161.02 -4.07%
Profit After Tax 3.5 36.44 40.8 -10.69%
Net Worth 122.51 119.01 82.61 44.06%
Reserves and Surplus 85.16 81.65 70.13 16.43%
Total Borrowing 0.15 0.15 0.19 -21.05%
Total Assets 234.84 228.49 176.35 29.56%
Cash Flow from Operating Activities -0.13 -6.81 12.26 -155.58%

*(in ₹ crores)

The company’s revenue has fallen by approx. 4% from FY23 to FY24, while PAT saw a fall of around 11% in the same period. The good sign is that total borrowing registered a drop of 21% and total assets also increased by 30%. However, the company is facing difficulty in managing operating cash flows with a fall of around 156% from FY23 to FY24.

Key Ratios of Garuda Construction and Engineering

The key ratios highlighting the company’s performance are:

Particulars 30 Apr 2024 31 Mar 2024 31 Mar 2023 YoY Change
EBITDA Margin 39.65% 32.49% 34.85% -6.77%
PAT Margin 29.49% 23.63% 25.39% -6.93%
ROCE 3.87% 46.69% 70.85% -34.10%
ROE 2.90% 36.14% 65.59% -44.90%

The ratio analysis of the Garuda Construction and Engineering is alarming with all the key ratios from EBITDA Margin, PAT Margin to ROCE and ROE registering a fall from FY23 to FY24.

Garuda Construction and Engineering: Peer Comparison

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The comparison of the company’s financial position with the peers in the same industry.
Company Name Total Revenue EBITDA PAT ROE (%) ROCE (%) EPS (in ₹) P/E Ratio
Garuda Construction and Engineering Limited 154.18 50.09 36.44 36.14% 46.69% 4.87
PSP Projects Limited 2,505.79 285.15 123.46 14.39% 18.98% 34.16 20
Capacite Infraprojects Limited 1,931.64 363.37 120.33 9.29% 14.24% 16.09 23.61
Vascon Engineers Limited 1,052.86 107.82 67.94 7.18% 8.25% 3.05 22.66
Ahluwalia Contracts (India) Limited 3,855.30 425.14 374.83 26.51% 21.05% 55.95 22.97
B L Kashyap and Sons Limited 1,244.53 332.99 52.53 11.16% 31.56% 2.33 48.67

* (in ₹ crores : FY24 ending)

Garuda Construction and Engineering Limited’s revenue and profitability are lower than the peers in FY24 but its ROCE and ROE are quite better, which is a good indication.

Risk Factors in Garuda Construction and Engineering Limited

Garuda Construction and Engineering Limited IPO risk factors are:

  1. Revenue is concentrated towards the top 10 companies mainly from the promoter-related companies and group companies.
  2. The construction industry is highly sensitive to changes in the economy, government, laws, or any seasonal fluctuations.
  3. Concentration of the business on the real estate market of the MMR (Mumbai Metropolitan Region).
  4. Risk of delay in getting the approvals or statutory clearances to start the project.
  5. Failure to acquire new contracts and the risk of termination or delay of the current contracts.
  6. A recession or slowdown in India’s economic growth could impact the infrastructure sector directly.

Garuda Construction and Engineering IPO Review

For all the Garuda Construction and Engineering IPO news and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App and open the demat account now.

Garuda Construction and Engineering Limited IPO Contact Information

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For inquiries related to the Garuda Construction and Engineering IPO details, you can contact at the following places:

Registered Office Address: 201, A Wing, Fortune 2000 C -3 Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra
Phone: +91 22 79635174
Email: compliance@garudaconstructionengineering.com
Company Website: www.garudaconstructionengineering.com

Garuda Construction and Engineering IPO Registrar Details:
Registrar Name: Link Intime India Private Limited
Phone: +91 810 811 4949
Email: garudaconstructions.ipo@linkintime.co.in

Garuda Construction and Engineering IPO Lead Manager Details:
Lead Manager: Corpwis Advisors Private Limited
Phone: +91 22 4972 9990
Email: ipo@corpwis.com

FAQs

Is Garuda Construction and Engineering IPO good?

Garuda Construction and Engineering has a good track record in the construction sector but its financial metrics such as revenue and profitability have shown a downward trend.

Who is the owner of Garuda Construction?

Garuda Construction and Engineering company’s promoter is PKH Ventures Limited, while one of the group companies is Artemis Electricals and Projects Limited.

What is the Garuda Construction and Engineering IPO Date 2024?

Garuda Construction and Engineering IPO will open on October 8, 2024, and close on October 10, 2024.

Reference
https://www.sebi.gov.in/filings/public-issues/oct-2024/garuda-construction-and-engineering-limited-rhp_87190.html

Author: All Content is verified by SMC Global Securities.

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