The IPO of Garuda Construction and Engineering is a book-built offering valued at Rs 264.10 crores. This issue consists of a fresh issuance of 1.83 crore shares amounting to Rs 173.85 crores, along with an offer for sale of 0.95 crore shares totaling Rs 90.25 crores.
Key Details:
- Issue Type: Main Board IPO
- Issue Size: ₹264.1 Cr
- Fresh Issue:₹173.85 Cr
- OFS: ₹90.25 Cr
- Lot Size: ₹157 Share
- Face value:₹5 per share
- Price Band: ₹92-₹95 per share
- Issue Open Date: October 8, 2024
- Issue Close Date: October 10, 2024
- Expected Listing Date: October 15, 2024
- Lead Manager: Corpwis Advisors Private Limited
- Registrar: Link Intime India Private Limited
Timeline
| IPO Open Date: | 8 Oct 2024 |
| IPO Close Date: | 10 Oct 2024 |
| Basis of Allotment: | 11 Oct 2024 |
| Refunds: | 14 Oct 2024 |
| Credit to Demat Account: | 14 Oct 2024 |
| IPO Listing Date: | 15 Oct 2024 |
About Company
Garuda Construction and Engineering Limited is a leading construction and engineering company in India. The company offers a wide range of services, including civil construction, building construction, and infrastructure development.
Core Business:
- Construction and Engineering: Garuda Construction and Engineering provides comprehensive construction and engineering solutions for various projects, such as residential, commercial, and infrastructure development.
- Infrastructure Development: The company specializes in developing infrastructure projects, including roads, bridges, railways, and ports.
Market Position:
- Garuda Construction and Engineering has a strong presence in the Indian construction and engineering market.
- The company has a reputation for quality workmanship, timely delivery, and project management expertise.
- Garuda Construction and Engineering has a diversified project portfolio, including both public and private sector projects.
Future Outlook:
- The Indian construction and engineering sector is expected to grow, driven by urbanization, industrialization, and infrastructure development.
- Garuda Construction and Engineering aims to expand its operations, diversify its project portfolio, and explore new market opportunities.
- The company may also invest in new technologies to improve efficiency and productivity.
Here are some resources to learn more about company
Objective
The primary objectives of the Garuda Construction and Engineering Limited IPO are:
- Raising Capital: The company aims to raise ₹264.1 crores through the IPO, which will be used for:
- Expansion: Funding the expansion of operations and the development of new projects.
- Working Capital: Meeting the day-to-day operational expenses of the business.
- General Corporate Purposes: Supporting other growth initiatives and strategic investments.
- Brand Visibility: The IPO will increase the visibility of Garuda Construction and Engineering among investors and the general public, enhancing its brand recognition and credibility.
- Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.
By achieving these objectives, Garuda Construction and Engineering Limited aims to strengthen its financial position, expand its business, and enhance its market presence.ce.
POSITIVE
- Economic Downturns: The construction industry can be sensitive to economic fluctuations, impacting demand for projects.
- Regulatory Changes: Changes in government policies or regulations related to construction can affect the industry.
- Competition: The construction and engineering market is competitive, with both domestic and international players.
NEGATIVE
- Economic Downturns: The construction industry can be sensitive to economic fluctuations, impacting demand for projects.
- Regulatory Changes: Changes in government policies or regulations related to construction can affect the industry.
- Competition: The construction and engineering market is competitive, with both domestic and international players.
Financial Review of Garuda Construction and Engineering Limited
So, How Does Garuda Construction and Engineering Limited IPO Fare in Terms of Financials ?
| Period Ended | Assets | Revenue | PAT | Net Worth | Reserves & Surplus | Total Borrowing |
|---|---|---|---|---|---|---|
| 30 Apr 24 | 234.84 | 11.88 | 3.53 | 122.51 | 85.16 | 0.15 |
| 31 Mar24 | 228.49 | 154.47 | 6.44 | 119.01 | 81.65 | 0.15 |
| 31 Mar 23 | 176.35 | 161.02 | 40.81 | 82.61 | 70.13 | 0.19 |
| 31 Mar 22 | 111.03 | 77.03 | 8.78 | 41.79 | 29.34 | 11.99 |
Financial Highlights
Key Observations:
- Revenue: Revenue has declined significantly from ₹161.02 crore in March 2023 to ₹11.88 crore in April 2024.
- Profitability: Profit after tax (PAT) has also declined, although not as dramatically as revenue.
- Asset Growth: Assets have grown steadily over the past two years, indicating investments in the business.
- Net Worth and Reserves: A healthy increase in net worth and reserves suggests a strong financial position.
- Debt: Total borrowing is minimal and has remained relatively stable.
Garuda Construction and Engineering Limited IPO Valuation :
| KPI | Values |
|---|---|
| ROE | 36.14% |
| ROCE | 46.69% |
| Debt/Equity | 30.62% |
| RoNW | 5.97 |
| P/BV | 23.63 |
| PAT Margin (%) |
SWOT Analysis: Garuda Construction and Engineering Limited IP
Strengths
- Diverse Project Portfolio: Offers a wide range of construction and engineering services.
- Market Presence: Has a strong presence in the Indian construction and engineering market.
- Experienced Workforce: Likely has a skilled and experienced workforce.
Weaknesses
- Economic Downturns: The construction industry can be sensitive to economic fluctuations.
- Regulatory Changes: Changes in government policies or regulations related to construction can affect the industry.
- Competition: The construction and engineering market is competitive, with both domestic and international players.
Opportunities
- Growing Construction Market: The Indian construction sector is expected to grow, driven by urbanization and infrastructure development.
- Diversification: Exploring new market segments or geographic areas for expansion.
- Technology Adoption: Leveraging technology for improved project management, efficiency, and sustainability.
Threats
- Economic Slowdowns: A slowdown in the economy can impact demand for construction projects.
- Rising Material Costs: Increases in the cost of raw materials and labor can affect profitability.
- Regulatory Challenges: Stricter regulations or compliance requirements can increase operational costs.
COMPETITIVE ANALYSIS: MARKET PEERS
Key Competitors
- Larsen & Toubro Limited (L&T): One of the largest engineering and construction conglomerates in India.
- Tata Projects Limited: A subsidiary of the Tata Group, offering a wide range of construction and engineering services.
- Shapoorji Pallonji Group: A diversified business group with a strong presence in construction, real estate, and power generation.
- NCC Limited: A leading construction company specializing in infrastructure projects.
- GMR Infrastructure Limited: A diversified infrastructure company with interests in construction, energy, and airports.
Garuda Construction and Engineering Limited IPO GMP
- Grey market premium as on 10-10-2024 = ₹ /Share
Disclaimer:
- IPO Grey Market Premium (Garuda Construction and Engineering Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Garuda Construction and Engineering Limited IPO
🔴 Live Subscription Status 🔴
10/10/2024 5:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 60,04,862 | 0.02 | 0.91 | 1.24 |
| Non Institutional Investors(NIIs) | 41,70,000 | 1.11 | 2.58 | 9.03 |
| Retail Individual Investors(RIIs) | 97,30,000 | 3.52 | 6.73 | 10.80 |
| Employees | – | – | – | – |
| Total | 1,99,04,862 | 1.96 | 4.10 | 7.55 |
FINAL TAKEAWAY
✅ Avoid
HOW APPLY IPO USING DEMAT , UPI, ASBA, NET BANKING ETC ?
How to apply IPO using Bhim UPI app or any UPI app?
How to apply IPO Using KOTAK Bank (ASBA)?
Apply IPO using Upstox mobile app.
How to apply IPO using Bhim UPI app in Upstox?
These are simple and effective steps that increase your IPO allotment chances. Check our page on how to improve IPO allotment chances.
Happy investing!🤩
