About Garuda Construction and Engineering
Garuda Construction and Engineering, established in 2010, is a prominent civil construction company offering comprehensive construction solutions for an array of projects. These include residential, commercial, and mixed-use buildings, as well as infrastructure and industrial projects. The company also extends its diverse services to hospitality projects. In the realm of civil construction, it’s responsible for the creation of residential, hospitality, industrial, infrastructural, and commercial buildings. Moreover, it facilitates the construction of concrete building structures and composite steel structures considered integral to civil construction. The company further provides operations and maintenance services (O&M), along with mechanical, electrical, and plumbing (MEP) services and finishing work, which are essential components of its construction offerings.
Issue size
| Funds Raised in the IPO |
Amount |
| Overall |
₹264.10 crores |
| Fresh Issue |
₹173.85 crores |
| Offer for sale |
₹90.25 crores |
Utilisation of proceeds
| Purpose |
INR crores (%) |
| Working capital requirements |
75 (80.04%) |
| General corporate purposes including unidentified inorganic acquisitions |
60.85 (35%) |
| Other expenses |
13 (7.48%) |
Financials
| Financial year ended |
March 2022 |
March 2023 |
March 2024 |
| Total assets |
111.03 |
176.35 |
228.49 |
| Revenue |
77.03 |
161.02 |
154.47 |
| Profit After Tax |
18.78 |
40.8 |
36.44 |
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Note: Amount is in crores
Strengths
- The company established a track record of successfully executing a diverse mix of construction projects i.e., residential, hospitality, and commercial projects.
- Quality system managers are appointed within the company, and tasked with periodically conducting thorough inspections and tests at each project’s site. This rigorous approach guarantees potent project management capabilities and competent execution.
- Over the years, propelled by strong financial performance and a robust balance sheet, the company’s debt-equity ratio has consistently declined. The company has achieved an almost debt-free status over the last two years.
- The cumulative contract value of their ongoing and impending projects amounts to ₹ 1,40,827.44 lakhs. These projects are dispersed across various locations, including the Mumbai Metropolitan Region (MMR), Arunachal Pradesh, Karnataka, Rajasthan, and Punjab.
Risks
- The company’s total revenue (100%) comes from its top 10 clients, mainly promoter-related entities and group companies. The loss of any of its significant clients may adversely affect the business prospects.
- The company’s limited experience in dealing with unrelated third-party entities presents challenges to its growth If it cannot establish itself successfully as a developer or contractor beyond its promoter group and associated companies.
- 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.
- The previous IPO filed by the promoter group, PKH Venture Limited, was not subscribed leading to the withdrawal of the IPO.
- Operationally, significant working capital is a prerequisite for the business. If there are insufficient cash flows to meet these working capital requirements, it could negatively impact operational outcomes.
Schedule of Garuda Construction and Engineering
| Issue period |
08 - 10 Oct 2024 |
| Price range |
₹92 – ₹95 |
| Minimum quantity |
157 and multiples thereof |
| UPI mandate deadline |
10 Oct 2024 (5 PM) |
| Allotment finalization |
11 Oct 2024 |
| Refund initiation |
14 Oct 2024 |
| Share credit |
14 Oct 2024 |
| Listing date |
15 Oct 2024 |
| Mandate end date |
25 Oct 2024 |
| Lock-in end date for anchor investors (50%) |
10 Nov 2024 |
| Lock-in end date for anchor investors (remaining) |
09 Jan 2025 |
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