In recent weeks, Foreign Institutional Investors (FIIs) have been making significant adjustments in their investment strategies, particularly in the context
Garuda Construction and Engineering Limited, a Mumbai-based civil construction company, is set to launch its initial public offering (IPO) on October 8, 2024. The IPO will be open for subscription until October 10, 2024.
Price Band and Lot Size
The company has fixed a price band of Rs 92-95 per share. Investors can bid for a minimum of 157 equity shares and in multiples of 157 shares thereafter.
IPO Structure
The IPO consists of a fresh issue of 1.83 crore equity shares and an offer-for-sale (OFS) of up to 95 lakh equity shares by the promoter, PKH Ventures. The total issue size is pegged at Rs 264 crore at the upper end of the price band.
Allocation and Reservation
The IPO has allocated 50% of the net offer for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors.
Use of Proceeds
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.
Business Operations
Garuda Construction and Engineering provides comprehensive civil construction services for residential, commercial, industrial, infrastructure, and hospitality projects. The company also offers operation and maintenance (O&M), mechanical, electrical, and plumbing (MEP) services, and finishing works as part of its construction services.
The company has an order book of Rs 1,408.27 crore as of September 28, 2024, with 12 ongoing projects, including several residential and commercial projects in Mumbai and Thane.
Financial Performance
For the year ending March 2024, the company's revenue from operations fell 4% year-on-year (YoY) to Rs 154.18 crore, and the profit after tax declined to Rs 36.43 crore from Rs 40.79 crore in the previous year. The company's financial performance has been volatile, with a Compound Annual Growth Rate (CAGR) of 26% in revenue and 25% in profit after tax from fiscal 2022 to fiscal 2024.
Listing and Allotment
The equity shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The basis of allotment of IPO shares will be finalized by October 11, and the equity shares will be credited to the demat accounts of eligible investors by October 14. Trading in the equity shares is expected to commence on October 15.
Corpwis Advisors is the sole book-running lead manager for the IPO, while Link Intime India is the registrar of the offer.
For investors looking to understand more about the IPO process, it is essential to grasp the concept of initial public offerings and how they impact the market.
In recent weeks, Foreign Institutional Investors (FIIs) have been making significant adjustments in their investment strategies, particularly in the context
