The initial public offer (IPO) of Garuda Construction and Engineering will open for subscription on October 8. The issue includes a fresh equity sale worth Rs 173 crore and an offer for sale (OFS) of Rs 90 crore, closing on October 10.
The company has set a price band of Rs 92-95 per share, allowing investors to bid for 157 shares in one lot.
In the IPO, approximately 35% is reserved for retail investors, 50% for qualified institutional buyers, and the remaining 15% for non-institutional investors.
The proceeds from the fresh issue, up to Rs 100 crore, will be utilized for funding working capital requirements and general corporate purposes, including potential inorganic acquisitions.
Garuda Construction provides end-to-end civil construction services for residential, commercial, and industrial projects, as well as additional services for infrastructure and hospitality projects.
The civil construction services include the construction of residential, hospitality, industrial, infrastructural, and commercial buildings, as well as concrete building structures and composite steel structures required for civil construction. The company also provides additional services for infrastructure and hospitality projects.
The company’s capabilities encompass constructing concrete building structures and composite steel structures. Additionally, it offers operation and maintenance (O&M), mechanical, electrical, and plumbing (MEP) services, and finishing works as part of its construction services, providing comprehensive civil construction and additional services under its banner.
The Mumbai-based company has an order book of 12 ongoing projects, seven of which have a contract value of more than Rs 100 crore each. This includes a residential project named ‘Trinity Oasis’ in Thane, as well as construction and beautification work for the residential projects ‘Garuda Zenith’ and later ‘Garuda Shatrunjay’ in Mumbai, among others.
For the year ending March 2024, the company’s revenue from operations fell 4% year-on-year (YoY) to Rs 151 crore, and the profit after tax declined to Rs 36.43 crore from Rs 40.79 crore a year ago.
Corpwis Advisors is the sole book-running lead manager for the IPO, while Link Intime India is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
