Garuda Construction and Engineering Ltd IPO
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Garuda Construction and Engineering Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 278 L | ₹ 95 L | ₹ 97.3 L | ₹ 723.61 L | BSE | ₹ 264.1 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 08 Oct, 24 | 10 Oct, 24 | 157 | ₹ 14,130 | Book Building | 15 Oct, 24 |
Garuda Construction and Engineering Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Construction |
| Sub Sector | NA |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 0.54x | 13900000 | 7471316 |
| NII | 9.03x | 4170000 | 37669952 |
| Retail | 10.81x | 9730000 | 105203031 |
| Employee | 0x | 0 | 0 |
| Total | 5.41x | 27800000 | 150344299 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
Garuda Construction and Engineering Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 50.06 | 55.61 | 25.09 |
| EBITDA | 50.47 | 56.13 | 25.40 |
| PAT | 36.44 | 40.80 | 18.78 |
| Total Assets | 201.78 | 146.97 | 81.97 |
| Share Capital | 37.37 | 12.46 | 12.46 |
| Total Borrowings | 16.01 | 56.96 | 54.04 |
| Operating Activities (Net Cash) | 36.85 | 41.32 | 19.09 |
| Investing Activities (Net Cash) | -2.21 | -2.21 | -2.21 |
| Financing Activities (Net Cash) | 16.01 | 56.96 | 54.04 |
| Net Cashflow | 2.30 | 6.62 | 7.05 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About Garuda Construction and Engineering Ltd
Garuda Construction and Engineering Limited was incorporated as `Garuda Construction and Engineering Private Limited' a private limited company, under the Companies Act, 1956, pursuant to a certificate of incorporation dated September 21, 2010 issued by the Registrar of Companies, Maharashtra at Mumbai (RoC). Subsequently, the Company was converted into a public limited company pursuant to a special resolution passed by its shareholders in the extra ordinary general meeting held on September 09, 2023 and the name of the Company was changed to `Garuda Construction and Engineering Limited' and a fresh Certificate of Incorporation dated October 10, 2023 was issued to the Company by the RoC.
The company operates in the construction industry. The construction sector is the country's second-largest economic segment after Agriculture. The sector contributed 8.4% to the national GVA (at constant price) in FY23. The order book of construction companies is dependent upon the capital expenditure in the economy. Broadly, the investments can be classified into infrastructure, real estate and industrial construction. Increase in infrastructure demand & government initiative shows the potential for catapulting India to the third largest construction market globally. Overall the Indian Construction sector has grown at a CAGR of 10.6% from FY18 to FY23 from Rs. 2,375 Billion to Rs. 3,922 Billion. The construction sector is further expected to grow from Rs. 3,922 Billion in FY23 to Rs. 6,494 Billion in FY30 at a CAGR of 7.5%. Historically, infrastructure creation, spread across sectors such as roads and highways, telecom, airports, ports, power, oil and gas and railways has dominated the investments. Increase in Infrastructure demand & government initiative shows the potential for catapulting India to the third largest construction market globally. The sector is expected to contribute 15% to the Indian economy by 2030.
Garuda Construction and Engineering Limited is civil construction and engineering company based in Mumbai. The Company provides end to end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects. It also provides services such as operations and maintenance services (O&M) and Mechanical, Electrical and Plumbing (MEP) services and finishing works as a part of its construction services. Hence, The Company offers complete construction services under its banner.
Peer Comparison:
- PSP Projects Ltd
- Capacit'e Infraprojects Ltd
- Vascon Engineers Ltd
- Ahluwalia Contracts (India) Ltd
Garuda Construction and Engineering Ltd IPO Key Points
Strengths
- Its primary focus is civil construction of residential and commercial buildings.
- The Company has established a track record of successfully executing a diverse mix of construction projects i.e., residential, hospitality and commercial projects.
- Its goal is to use its project management and execution capabilities to accomplish its projects on schedule while keeping high construction quality.
- The Company has an experienced promoter and management team with its Chairperson and Managing Director who is also its Promoter, having over 2 decades of experience in various businesses, such as construction, hospitality and management services.
- Its marketing and sales strategies.
Risk
- Its total revenue comes from the company top 10 clients, mainly its promoter related entities and group companies. The loss of any of its significant clients may have an adverse effect on its business, financial condition, results of operations, and prospect.
- As a construction company, its limited experience in dealing with unrelated third-party entities presents challenges for its growth. If the company cannot establish ourselves successfully as developers or contractors beyond its promoter group and associated companies, the company longterm growth, operational results, and profits may be constrained. Notably, its revenue heavily relies on construction projects related to its Group Companies and promoters being 100.00%, 44.82%, 94.62% and86.65% in stub period ended April 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022 respectively.
- The construction industry is cyclical and sensitive to changes in the economy and this could have a significant impact on its operations and financial results.
Strategy
- Thrust into the Construction and Development segment.
- Increase its focus on and execute greater number of projects on a lock-and-key basis.
- Continue focusing on timely completion.
- Continue to maintain an asset light model for its business operations.
- Expand its geographical footprint.
- Its primary focus is civil construction of residential and commercial buildings.
- The Company has established a track record of successfully executing a diverse mix of construction projects i.e., residential, hospitality and commercial projects.
- Its goal is to use its project management and execution capabilities to accomplish its projects on schedule while keeping high construction quality.
- The Company has an experienced promoter and management team with its Chairperson and Managing Director who is also its Promoter, having over 2 decades of experience in various businesses, such as construction, hospitality and management services.
- Its marketing and sales strategies.
How To Apply for Garuda Construction and Engineering Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.