Garuda Construction IPO: Here are 10 latest Key things you need to know

1. Garuda Construction and Engineering IPO Overview: Garuda Construction IPO is set to open for subscription from October 8, 2024, and will close on October 10, 2024. The company aims to raise ₹210.64 crores through this Main-board IPO, with ₹173.85 crores raised as a fresh issue and ₹90.25 crores through the sale of 95,00,000 equity shares at a face value of ₹5 each. The price band is fixed at ₹92 to ₹95 per share.

2. IPO Allocation and Market Lot Details

The IPO is divided into three investor categories: 35% of shares are reserved for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net-worth Individuals (HNIs). The minimum market lot consists of 157 shares, requiring a minimum investment of ₹14,915. The maximum allowed investment for retail investors is ₹193,895 for 13 lots or 2041 shares.

3. Garuda Construction and Engineering IPO GMP (Grey Market Premium)

As of now, the Grey Market Premium (GMP) for Garuda Construction and Engineering IPO is hovering around ₹0, indicating a neutral sentiment among investors. While the GMP is subject to change closer to the IPO listing date, it currently reflects stable interest in the offering. Investors should monitor the GMP for further insights as the listing approaches.

4. Company Background and Business Model

Garuda Construction and Engineering, incorporated in 2010, is an emerging player in India’s construction sector. The company provides end-to-end construction solutions, including civil construction for residential, commercial, industrial, and infrastructure projects. It is known for its high-quality execution and long-standing relationships with its clients, focusing on timely project completion within defined budgets.

5. Core Strengths of Garuda Construction

Garuda Construction’s key strengths include its diverse project portfolio, expertise in civil engineering, experienced leadership team, customer-centric approach, and solid financial performance. Despite fluctuations in revenue, the company has maintained profitability and is known for delivering high-quality concrete structures across sectors.

6. Financial Performance and Key Metrics

Garuda Construction has demonstrated consistent financial performance. For FY2024, the company reported a revenue of ₹154.47 crores, with a profit after tax of ₹36.44 crores. Its Return on Equity (ROE) stands at 36.14%, while the Return on Capital Employed (ROCE) is an impressive 46.69%. The company’s earnings per share (EPS) for FY2023 was ₹4.87.

7. IPO Objectives and Utilization of Funds

The funds raised from the IPO will be utilized to meet the company’s working capital requirements, for general corporate purposes, and for inorganic acquisitions. The strategic use of these funds is expected to further strengthen Garuda Construction’s market position and expand its footprint across India.

8. IPO Timeline and Important Dates

The IPO will open on October 8, 2024, and close on October 10, 2024. The basis of allotment will be finalized by October 11, 2024, with refunds processed by October 14, 2024. Shares will be credited to investors’ Demat accounts on the same day, and the stock is expected to list on the NSE and BSE on October 15, 2024.

9. Peer Comparison and Industry Position

Garuda Construction operates in a competitive space, with peers such as PSP Projects, Capacite Infraprojects, and Ahluwalia Contracts. These companies boast strong financial metrics, making the comparison essential for investors looking to assess Garuda Construction’s relative strength and future growth potential in the construction industry.

10. How to Apply for Garuda Construction and Engineering IPO

Investors can apply for the IPO through ASBA via their bank or broker accounts, or use UPI-based applications like M-Stock, Alice Blue, and Motilal Oswal. The process includes filling out the application, approving the mandate via a UPI app, and confirming the bid submission.

11. Garuda Construction and Engineering IPO GMP (Grey Market Premium)

As of now, the Grey Market Premium (GMP) for Garuda Construction and Engineering IPO is hovering around ₹0, indicating a neutral sentiment among investors. While the GMP is subject to change closer to the IPO listing date, it currently reflects stable interest in the offering. Investors should monitor the GMP for further insights as the listing approaches.