Upcoming IPO: Garuda Construction and Engineering gets SEBI’s nod

Upcoming IPO: Mumbai-based Civil Construction and Engineering firm Garuda Construction and Engineering Limited, has received the nod from capital markets regulator, the Securities and Exchange Board of India (Sebi), to raise funds through an initial public offering (IPO), on August 26, as per an official release.

The company filed its DRHP on May 24, 2024.

The IPO consists of a fresh issue of up to 18.30 million equity shares at a face value of ₹5 apiece and an offer for sale of up to 9.50 million equity shares by PKH Ventures, the promoters, the release added.

The offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders, as per the company statement.

Garuda Construction made its foray into the hospitality sector in 2010 by constructing the Golden Chariot Vasai Hotel & Spa, which was completed in the year 2014. 

Garuda Construction order book

The Mumbai-based Company has an order book of 12 ongoing projects, of it has 7 projects with a contract value of more than ₹100 crore each, which include a residential project, ‘Trinity Oasis,’ in Thane, Maharashtra, construction and beautification work of the residential project ‘Garuda Zenith’ and later ‘Garuda Shatrunjay’ in Mumbai. It was also involved in the construction, development and completion of the commercial project ‘Options world’ in Mumbai, the construction of a residential building in Amritsar, Punjab, and a Hydro Power Project in Arunachal Pradesh, apart from a residential project in Thane, Maharashtra, as per the release.

Garuda Construction is involved in building homes, offices, factories, and infrastructure. Their total work is worth about ₹1,408 crore. They've finished some work worth about ₹547 crore so far.

The company made more money last year. From 2022 to 2023, they earned ₹161 crore, which is more than double what they made the year before. Their profit also went up a lot, reaching about ₹41 crore.

In the first eight months of the current year (up to November 2023), Garuda Construction earned about ₹80 crore and made a profit of nearly ₹19 crore.

The company is planning to sell shares to the public for the first time. This is called an Initial Public Offering (IPO). Corpwis Advisors is helping them with this, and Link Intime India is keeping track of who buys the shares. After the IPO. Garuda Construction's shares will be available on NSE and BSE.