Garuda Construction and Engineering Limited provides comprehensive construction services for residential, commercial, residential/commercial, infrastructure, and industrial projects, as well as additional services for infrastructure and hospitality projects. Garuda Construction and Engineering IPO aims to raise Rs 264.10 crores. The issue is a combination of fresh issue of Rs 173.85 crores and OFS aggregating to Rs 90.25 crores.
IPO opens
October 8, 2024
IPO Closes
October 10, 2024
IPO Size (Rs.)
₹158.00 Cr₹264.10 Cr
Breakup
Fresh issue ₹173.85 Cr + OFS ₹90.25 Cr
Face Value:
₹ 5
IPO Price in Rs :
₹92 to ₹95 per shareshare
Minimum Lot
157 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
BRLM
Corpwis Advisors Private Limited
Registrar
Link Intime
About Garuda Construction and Engineering IPO:
Company was incorporated as ‘Garuda Construction and Engineering Pvt. Ltd’ at Mumbai in 2010.
Company provides end to end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects.
They also provide services such as operations and maintenance services, Mechanical, Electrical and Plumbing services and finishing works as a part of its construction services.
The company has primarily been an in-house construction company performing sub-contract work of for its Promoter Group and group related entities.
Now company is directly venturing into contracts with third parties and is taking on a role of a professionally managed construction company.
The company is currently engaged in civil construction of 6 residential projects, 2 commercial projects, 1 industrial project and 1 infrastructure project.
Pravinkumar Brijendra Kumar Agarwal, PKH Ventures Limited and Makindian Township Private Limited are the company’s promoters.
Financials : Garuda Construction and Engineering IPO
Particulars / Rs. Cr
April 30th, 2024 (1m)
2024(12)
2023(12)
2022(12)
Revenue from Operations
11.88
154.18
160.69
77.02
Revenue Growth (%)
–
-4.05%
108.63%
–
EBITDA as stated
4.71
50.09
55.99
27.17
EBITDA Margin (%)
39.65%
32.49%
34.85%
35.27%
Net Profit
3.5
36.44
40.8
18.78
Net Profit (%)
29.49%
23.63%
25.39%
24.39%
Share Capital
37.37
37.37
12.46
12.46
Net Worth
122.51
119.01
82.61
41.79
Total Borrowings
0.15
0.15
0.19
11.99
Post issue Share Capital
46.52
FV
5.0
IPO price
95.0
EPS Fy24
3.9
PE
24.3
Market cap in Lacs
884
Market cap / Sales
5.73
Anchor: Garuda Construction and Engineering IPO
Salient Points: Garuda Construction and Engineering IPO
Group company PKH Ventures came with its maiden IPO to mobilize Rs. 379 cr. in July 2023, withdrew it du to poor response.
For the one-month period ended April 30, 2024, the net profit was Rs 3.50 crore on a sale of Rs 11.88 crore.
Order book of the company is Rs 1408 crore. The order book is made up of 12 ongoing civil construction projects consisting of six residential projects, two commercial projects, one industrial project and one infrastructure.
PE ~24.4 times of FY24 EPS, P/BV ~3 times
Peers: P/E & P/BV
BL Kashyap 35.4x, 4.2 times
PSP Projects, 21.5x, 2.8 times
VAscon Engineering 20.2x, 1.4 times
Ahluwalia Contractors 35.1x, 4.7 times.
In FY23, 95% of company’s revenue came from related parties.
Company follows an asset-light model. They deploy majority of equipment and labour through third party contractors.
The Company’s revenue from operations has grown at CAGR of 26.03%, from ₹ 77.02 Cr in FY2022 to ₹ 154.18 Cr in FY2024, and the Company’s PAT increased from ₹ 18.78 Cr in FY2022 to ₹ 36.43 Cr in FY 2024, at a CAGR of 24.72%.
However FY2024 revenue dropped 4% YoY and net profit declined 13% YoY.
I do not intend to apply in Garuda Construction and Engineering IPO. This is due to concerns due to earlier failed attempt of IPO, highs debtors, high related party transactions.
GMP as reported on social media is quite low.
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
