Garuda Construction and Engineering IPO: Price band set at ₹92-95 per share; check issue size, key dates, more

Garuda Construction and Engineering IPO price band: The Garuda Construction and Engineering IPO price band has been fixed in the range of ₹92 to ₹95 per equity share of the face value of ₹5. The Garuda Construction IPO date of subscription is scheduled for Tuesday, October 8 and will close on Thursday, October 10. The allocation to anchor investors for the Garuda Construction IPO is scheduled to take place on Monday, October 7.

The floor price is 18.40 times the face value of the equity shares and the cap price is 19 times the face value of the equity shares. The price-to-earnings ratio based on diluted EPS for the fiscal 2024 for the company at the upper end of the price band is as high as 19.51 times and at the lower end of the price band is 18.89 times as compared to the average industry peer group P/E ratio of 27.58 times. The Garuda Construction and Engineering IPO lot size is 157 equity shares and in multiples of 157 equity shares thereafter.

Garuda Construction and Engineering IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, Garuda Construction and Engineering IPO basis of allotment of shares will be finalised on Friday, October 11, and the company will initiate refunds on Monday, October 14, while the shares will be credited to the demat account of allottees on the same day following refund. Garuda Construction share price is likely to be listed on BSE and NSE on Tuesday, October 15.

The company offers full-service civil construction for projects including homes, businesses, infrastructure, and hotels, as well as supplementary services for infrastructure and commercial projects. In contrast, civil construction comprises the building of concrete building structures and composite steel structures that are necessary for civil construction, as well as the construction of commercial, industrial, residential, and hospitality buildings.

As per the red herring prospectus (RHP), the company's listed peers are PSP Projects Ltd (with a P/E of 20), Capacite Infraprojects Ltd (with a P/E of 23.61), Vascon Engineers Ltd (with a P/E of 22.66), Ahluwalia Contracts (India) Ltd (with a P/E of 22.97), and B L Kashyap & Sons Ltd (with a P/E of 48.67).

The civil construction company is experiencing growth, with its revenue from operations reaching ₹1,187.50 lakhs for the period ending April 30, 2024 and ₹15,417.83 lakhs, 16068.76 lakhs, and ₹7702.08 lakhs for fiscal 2024, fiscal 2023, and fiscal 2022, respectively.

Garuda Construction IPO details

Garuda Construction and Engineering IPO consists of 1.83 crore new equity shares and an offer for sale of 95 lakh equity shares by promoter PKH Ventures Ltd.

The funds raised from the fresh issue will be utilised to meet the working capital needs and for general corporate purposes, including potential inorganic acquisitions.

The issue's sole book running lead manager is Corpwis Advisors Private Ltd, and the registrar is Link Intime India Private Ltd.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.