Garuda Construction and Engineering Limited is coming up with an IPO with a fresh issue of 1.83 crores shares worth INR 173.85 crores and an offer to sell 95 lakh shares worth INR 90.25 crores. The company aims to fund its working capital requirement and for general corporate purposes.
Garuda Construction and Engineering IPO – Important Dates
| Garuda Construction and Engineering Limited IPO Date | October 8, 2024 to October 10, 2024 |
| Garuda Construction and Engineering Limited IPO Listing Date | October 15, 2024 |
| Garuda Construction and Engineering Limited IPO Price | INR 92-95 per share |
| Garuda Construction and Engineering Limited IPO Lot Size | 157 shares |
| Garuda Construction and Engineering Limited IPO Total Issue Size | INR 264.10 crores |
| Garuda Construction and Engineering Limited IPO Basis of Allotment | October 11, 2024 |
| Garuda Construction and Engineering Limited IPO Initiation of Refunds | October 14, 2024 |
| Garuda Construction and Engineering Limited IPO Credit of Shares to Demat | October 14, 2024 |
| Garuda Construction and Engineering Limited IPO Issue Type | Book Built Issue IPO |
| Garuda Construction and Engineering Limited IPO Listing At | BSE NSE |
Read more about Garuda Construction and Engineering Limited IPO GMP
Garuda Construction and Engineering Limited IPO – Company Profile
Garuda Constructions and Engineering Limited is a growing civil construction company. They provide end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects and additional services for infrastructure and also hospitality projects.
The end-to-end civil construction starts with a detailed route survey, designing, detailed engineering, mobilization of resources, micro scheduling of construction activities, obtaining construction permissions and conducting soil/water testing, hiring of contractor/manpower, procurement of material, lab testing, carrying out construction activities as per approved plan and finally handing over the project as per the agreed terms.
The order book consists of 12 ongoing projects, of which 7 projects are having a contract value of more than 10,000 lakhs each.
Garuda Construction and Engineering Ltd IPO Fundamental Analysis
Garuda Construction and Engineering shows strong asset growth, profitability, and liquidity improvement over time. The increase in NAV and consistent profitability reflect strong financial health. The slight drop in revenue and PAT in 2024, along with a decline in RoNW, could be areas of concern and should be monitored for future trends.
- Revenue and Expenses:
- Revenue: The company’s revenue grew significantly from ₹7,702.08 lakhs in March 2022 to ₹16,068.76 lakhs in March 2023. However, it slightly decreased to ₹15,417.83 lakhs in March 2024, indicating a small dip in the most recent fiscal year.
- Expenses: Expenses also saw growth, from ₹5,224.41 lakhs in March 2022 to ₹10,593.69 lakhs in March 2023, before stabilizing at ₹10,481.90 lakhs in March 2024.
- Profit and Loss After Tax (PAT):
- PAT: Profit after tax increased from ₹1,878.22 lakhs in March 2022 to ₹4,079.53 lakhs in March 2023, before reducing to ₹3,643.53 lakhs in March 2024. Despite the drop in 2024, the company still maintained strong profitability.
- Diluted EPS:
- EPS improved from ₹2.51 in March 2022 to ₹5.46 in March 2023. However, it decreased slightly to ₹4.87 in March 2024, reflecting the lower PAT for that year.
- Return on Net Worth (RoNW):
- RoNW increased from 44.92% in March 2022 to 49.38% in March 2023. It then declined to 30.62% in March 2024, primarily due to the lower PAT and increased equity base.
- Net Asset Value (NAV) per Equity Share:
- NAV per share improved consistently, from ₹5.59 in March 2022 to ₹11.05 in March 2023, and further to ₹15.92 in March 2024, indicating strong shareholder value growth.
- Assets and Liabilities:
- Total Assets: The company’s assets grew steadily, from ₹11,103.42 lakhs in March 2022 to ₹17,634.96 lakhs in March 2023, and further to ₹22,848.53 lakhs in March 2024, showcasing robust growth in asset strength.
- Total Liabilities: Liabilities also increased, from ₹6,924.38 lakhs in March 2022 to ₹9,373.78 lakhs in March 2023, and to ₹10,947.89 lakhs in March 2024. The company’s liabilities grew in tandem with its asset base.
- Current Ratio:
- The current ratio improved steadily, from 1.36 in March 2022 to 1.74 in March 2023, and reached 1.84 in March 2024. This indicates improving liquidity and the company’s ability to meet its short-term obligations.
Garuda Construction and Engineering IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 7,702.08 | 16,068.76 | 15,417.83 |
| Equity (₹ in lakhs) | 4,179.04 | 8,261.18 | 11,900.64 |
| Expenses (₹ in lakhs) | 5,224.41 | 10,593.69 | 10,481.90 |
| Profit and Loss After Tax (₹ in lakhs) | 1,878.22 | 4,079.53 | 3,643.53 |
| Diluted EPS only (₹) | 2.51 | 5.46 | 4.87 |
| Return on Net Worth (%) | 44.92 | 49.38 | 30.62 |
| NAV per Equity Share (₹) | 5.59 | 11.05 | 15.92 |
| Total Assets (in lakhs) | 11,103.42 | 17,634.96 | 22,848.53 |
| Total Liabilities (in lakhs) | 6,924.38 | 9,373.78 | 10,947.89 |
| Current Ratio (in times) | 1.36 | 1.74 | 1.84 |
Garuda Construction and Engineering Limited IPO Peer Comparison
Garuda Construction & Engineering has a strong RoNW at 36.14%, while PSP Projects and Ahluwalia Contracts stand out with high EPS (₹34.16 and ₹55.95, respectively). B L Kashyap struggles with a high P/E ratio of 48.67.
| Company | Face Value per Equity Share (₹) | P/E Ratio | EPS (₹) | RoNW (%) | NAV(₹) |
| Garuda Construction & Engineering Ltd | 5 | NA | 4.87 | 36.14 | 15.92 |
| PSP Projects Limited | 10 | 20.00 | 34.16 | 17.73 | 254.13 |
| Capacite Infraprojects Limited | 10 | 23.61 | 16.09 | 9.35 | 223.44 |
| Vascon Engineers Limited | 10 | 22.66 | 3.05 | 11.32 | 44.33 |
| Ahluwalia Contracts (India) Limited | 2 | 22.97 | 55.95 | 17.14 | 238.84 |
| B L Kashyap & Sons Limited | 1 | 48.67 | 2.33 | 13.38 | 22.02 |
Garuda Construction and Engineering Ltd IPO Objective
The main objective of Garuda Construction and Engineering’s IPO is to utilize INR 100 crores from the net proceeds to meet incremental working capital requirements. The remaining funds will be deployed for general corporate purposes, including operating expenses, project development, and marketing efforts.
- To fund the working capital requirement: In order to support the incremental business requirements, the Company requires additional working capital for funding its incremental working capital requirements. For the said purpose the company plans to utilise INR 100 crores from the net proceeds.
- General corporate expense: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
Garuda Construction and Engineering IPO Risks And Challenges
Garuda Construction and Engineering relies on its top 10 clients, mainly promoter-related entities. Losing key clients or facing economic downturns in the cyclical construction industry could harm its operations. A prior IPO was withdrawn due to under-subscription.
- The total revenue comes from the top 10 clients, mainly the promoter-related entities and group companies. The loss of any of the significant clients may have an adverse effect on the business, financial condition, results of operations, and prospects.
- The construction industry is cyclical and sensitive to changes in the economy and this could have a significant impact on the operations and financial results.
- The previous IPO filed by the promoter group PKH Venture Limited was not subscribed leading to the withdrawal of the IPO.
Garuda Construction and Engineering Ltd IPO – Industry & Market Potential
The Construction sector was hit hard during the pandemic, and because of the lockdown, and labour migration led to logistical challenges. However, the sector has witnessed growth in FY22 and FY23, supported by unlock measures and significant infrastructure investments by the Government.
The industry has experienced a similar growth trajectory in FY24, supported by a sustained focus on infrastructure investments in roads, railways, and airports, in addition to the expansion in real estate activity. According to CMIE, early indications from the real estate sector reveal a robust 23.5% year-on-year growth in sales revenues for the quarter ending December 2023.
Over the long term, the outlook for the construction sector is favourable supported by continued government spending on infrastructure.
Garuda Construction and Engineering Limited IPO – Type of Offer
Garuda Construction and Engineering Limited’s IPO includes a fresh issue of 1.83 crore shares valued at INR 173.85 crores, along with an offer for sale of 95 lakh shares worth INR 90.25 crores. The funds will be allocated toward working capital needs and general corporate purposes.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 173.85 crores. The company aims to fund its working capital requirement and for general corporate purposes.
- Offer for sale: The company is offering to sell existing shares worth INR 90.25 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale |
| PKH Ventures Limited | 95,00,000 |
Garuda Construction and Engineering IPO Offer Size
The offer size for Garuda Construction and Engineering Limited’s IPO is INR 264.10 crores, comprising a fresh issue of 1.83 crore shares worth INR 173.85 crores and an offer for sale of 95 lakh shares worth INR 90.25 crores. The company intends to use the proceeds for working capital requirements and general corporate purposes.
Garuda Construction and Engineering Limited IPO Allotment Structure
Garuda Construction and Engineering Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
Read more about Garuda Construction and Engineering IPO Allotment Status
How to apply for the Garuda Construction and Engineering IPO?
To apply for the Garuda Construction and Engineering Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Garuda Construction and Engineering Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Garuda Construction and Engineering Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more about Garuda Construction and Engineering IPO Day 1 Subscription
How do you check Garuda Construction and Engineering IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Garuda Construction and Engineering Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Garuda Construction and Engineering Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Garuda Construction and Engineering Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Garuda Construction and Engineering Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE, NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (NSE) and National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Read more about Garuda Construction and Engineering IPO Day 2 Subscription
Garuda Construction and Engineering Ltd IPO Offer Registrar
The registrar for the Garuda Construction and Engineering Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West Mumbai 400 083
Tel : +91 810 811 4949
Website: www.linkintime.co.in
Read more about Garuda Construction and Engineering IPO Day 3 Subscription
Garuda Construction and Engineering IPO – FAQs
1. What is the allotment date of the Garuda Construction and Engineering IPO?
The allotment date of the Garuda Construction and Engineering Limited IPO is October 11, 2024.
2. What is the price band of the Garuda Construction and Engineering IPO?
The price band of the Garuda Construction and Engineering Limited IPO is INR 92-95 per share.
3. What is the size of the Garuda Construction and Engineering IPO?
The offer size for Garuda Construction and Engineering Limited’s IPO is INR 264.10 crores, comprising a fresh issue of 1.83 crore shares worth INR 173.85 crores and an offer for sale of 95 lakh shares worth INR 90.25 crores. The company intends to use the proceeds for working capital requirements and general corporate purposes.
4. What is the listing date of the Garuda Construction and Engineering IPO?
The listing date of Garuda Construction and Engineering Limited’s IPO is October 15, 2024.
