The Garuda Construction and Engineering Limited IPO is generating buzz among investors, and for good reason. With a total issue size of ₹264.10 crores, this book-built issue comprises both a fresh issue of 1.83 crore shares worth ₹173.85 crores and an offer for sale of 0.95 crore shares totaling ₹90.25 crores.
Key IPO Details
- IPO Opening Date: October 8, 2024
- IPO Closing Date: October 10, 2024
- Allotment Date: Expected on October 11, 2024
- Listing Date: Tentatively set for October 15, 2024
- Price Band: ₹90 to ₹95 per share
- Lot Size: Minimum application of 157 shares
For retail investors, the minimum investment required is ₹14,915 for one lot. High Net-worth Individuals (HNIs) and Small and Medium Enterprises (SMEs) will have higher lot sizes, with sNII requiring 14 lots (2,198 shares) and bNII needing 68 lots (10,676 shares).
About Garuda Construction and Engineering Limited
Founded in 2010, Garuda Construction and Engineering is a versatile construction company that specializes in a range of services, including:
- Residential and Commercial Projects: Comprehensive construction services for various types of buildings.
- Infrastructure Development: Engaging in larger projects that enhance urban infrastructure.
- Operational Services: Offering operation and maintenance (O&M) and mechanical, electrical, and plumbing (MEP) services, alongside finishing works.
The company has made a mark with notable projects such as the Golden Chariot Vasai Hotel & Spa, establishing a solid reputation in the industry.
Strengths and Track Record
Garuda Construction and Engineering stands out due to its:
- Focused Business Approach: Concentrating primarily on residential and commercial building construction, with plans to expand into industrial and infrastructure sectors.
- Proven Track Record: With significant accomplishments in various projects since its inception, including successful residential projects in the Mumbai Metropolitan Region (MMR) and other states.
Financial Highlights
As of March 31, 2024, Garuda Construction boasts impressive financial metrics:
- Market Capitalization: ₹883.9 Cr
- Return on Equity (ROE): 36.14%
- Return on Capital Employed (ROCE): 46.69%
- Return on Net Worth (RoNW): 30.62%
- Price to Book Value (P/BV): 5.97
- PAT Margin: 23.63%
These indicators reflect a robust financial health and operational efficiency, making Garuda Construction a potential candidate for investment.
Conclusion
The Garuda Construction and Engineering IPO presents a compelling opportunity for investors looking to capitalize on a growing company in the construction sector. With a strong track record, focused approach, and solid financial metrics, Garuda Construction is well-positioned for future growth.
As the bidding period opens, investors should evaluate this opportunity closely. Ensure to conduct thorough research and consider your investment strategy before participating in the IPO. Happy investing!
