Mr. Pravinkumar Agarwal, CMD of Garuda Construction And Engineering Limited in the middle along team and Corpwis Advisors Private Limited’s team at their IPO announcement.
- Price Band of ₹92/– ₹95/- per Equity Share bearing face value of ₹5/- each (“Equity Shares”)
- Bid/Offer Opening Date – Tuesday, October 08, 2024 and Bid/Offer Closing Date – Thursday, October 10, 2024.
- Minimum Bid Lot is 157 Equity Shares and in multiples of 157 Equity Shares thereafter.
- The Floor Price is 18.40 times the face value of the Equity Share and the Cap Price is 19.00 times the face value of the Equity Share.
Mumbai, October 3, 2024: Garuda Construction and Engineering Limited, a growing civil construction company provide end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects and additional services for infrastructure and also hospitality projects, has fixed the price band of ₹92/- to ₹95/- per Equity Share of face value ₹5/- each for its maiden initial public offer.
The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Tuesday, October 08, 2024, for subscription and close on Thursday, October 10, 2024. Investors can bid for a minimum of 157 Equity Shares and in multiples of 157 Equity Shares thereafter.
The IPO is a mix of fresh issue of up to 1,83,00,000 equity shares and an offer of sale up to 95,00,000 equity shares.
The net proceeds (gross proceeds less issue expenses) from its fresh issuance will be utilized to the extent of Rs 100 crore towards working capital requirement; and balance towards general corporate purposes including unidentified inorganic acquisitions.
Garuda Construction and Engineering is a growing civil construction company providing end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects and additional services for infrastructure and also hospitality projects.
Its end-to-end civil construction starts with detailed route survey, designing, detailed engineering, mobilization of resources, micro scheduling of construction activities, obtaining construction permissions and conducting soil/water testing, hiring of contractor / manpower, procurement of material, lab testing, carrying out construction activities as per approved plan and finally handing over the project are per the agreed terms.
Besides, civil construction it is also involved in services. It also provides services such as operations and maintenance services (“O&M”) and Mechanical, Electrical and Plumbing (“MEP”) services and finishing works as a part of its construction services.
It is currently engaged in civil construction of six (6) residential projects, two (2) commercial projects, one (1) industrial project and one (1) infrastructure, with an order book of ₹ 1,408.27 crore.
Garuda Construction’s revenue from operations has grown from ₹ 77.02 crore in Fiscal 2022 to ₹ 154.18 crore in Fiscal 2024, at a Compound Annual Growth Rate (“CAGR”) of 26.03%, and profit after tax has increased from ₹ 18.78 crore in Fiscal 2022 to ₹ 36.43 crore in Fiscal 2024, at a CAGR of 24.72%.
For the one month ended April 2024, revenue from operations stood at ₹ 11.87 crore and Profit after Tax stood at ₹ 3.50 crore.
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.
Corpwis Advisors Private Limited is the sole book running lead manager, and Link Intime India Private Limited is the registrar of the issue.
RHP Link: https://www.sebi.gov.in/filings/public-issues/oct-2024/garuda-construction-and-engineering-limited-rhp_87190.html
DISCLAIMERS: GARUDA CONSTRUCTION AND ENGINEERING LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offer of its Equity Shares and has filed the red herring prospectus dated September 28, 2024 with the RoC. The RHP is made available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the BRLM i.e., Corpwis Advisors Private Limited at www.corpwis.com, the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.garduaconstructionengineering.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled “Risk Factors” on page 33 of the RHP. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision and instead should place reliance on the RHP.The Equity Shares offered in the Issue have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws in the United States. Accordingly, the Equity Shares are being offered and sold only outside the United States in “offshore transactions”, as defined in, and in compliance with, Regulation S and the applicable laws of the jurisdiction where those offers and sales are made
DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 341 of the RHP for the full text of the disclaimer clause of SEBI.
DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the ‘Disclaimer Clause of NSE’.
DISCLAIMER CLAUSE OF BSE (The Designated Stock Exchange): It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the Red Herring Prospectus has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Red Herring Prospectus. The investors are advised to refer to the Red Herring Prospectus for the full text of the Disclaimer clause of the BSE Limited.
