Garuda Construction and Engineering IPO opens for subscription tomorrow (Tuesday, October 8). The company offers comprehensive civil construction services for residential, commercial, residential cum commercial, infrastructure, and industrial projects, as well as, additional services for infrastructure and hospitality projects. The company's goal is to enhance its capacity for executing civil construction projects across various sectors. Additionally, the firm aims to secure larger contracts with developers outside their group entities and broaden their client base.
In fiscal 2022, the company's revenue from operations was ₹7,702.08 lakhs, and by fiscal 2024, it had increased to ₹15,417.83 lakhs, representing a Compound Annual Growth Rate (CAGR) of 26.03%. Additionally, the company's profit after tax rose from ₹1,878.22 lakhs in fiscal 2022 to ₹3,643.53 lakhs in fiscal 2024, reflecting a CAGR of 24.72%.
The company's listed peers, as per its red herring prospectus (RHP), include PSP Projects Ltd, which has a P/E of 20, Capacite Infraprojects Ltd, which has a P/E of 23.61, Vascon Engineers Ltd, which has a P/E of 22.66, Ahluwalia Contracts (India) Ltd, which has a P/E of 22.97, and B L Kashyap & Sons Ltd, which has a P/E of 48.67.
According to the CareEdge Report, the operating profit margin for construction peers in FY23 ranged from 10.80% to 34.80%, with Garuda Construction and Engineering leading at 34.80%, significantly surpassing the peer average of 16.90% during the same period.
Garuda Construction IPO date: Garuda Construction and Engineering IPO opens for subscription on Tuesday, October 8, and closes on Thursday, October 10.
Garuda Construction IPO price band: The issue's price band has been fixed in the range of ₹92 to ₹95 per equity share of face value of ₹5.
Garuda Construction IPO lot size: Garuda Construction and Engineering IPO lot size is 157 equity shares and its multiples thereafter.
Anchor investors: The allocation to anchor investors for Garuda Construction IPO is scheduled to take place today (Monday, October 7).
Garuda Construction IPO details: The IPO includes 1.83 crore fresh equity and 95 lakh equity shares offered for sale by promoter PKH Ventures Ltd.
Garuda Construction IPO objective: The proceeds from the fresh offering will be used to address the company's operational funding requirements and for general business use, including possible non-organic acquisitions.
Garuda Construction IPO listing date and allotment details: The basis of allotment of shares for the Garuda Construction and Engineering IPO is expected to be finalised on Friday, October 11. Refunds will be initiated by the company on Monday, October 14, and the shares will be credited to the demat account of allottees on the same day after the refund. It is anticipated that Garuda Construction share price will list on BSE and NSE on Tuesday, October 15.
Lead Manager and Registrar of Garuda Construction IPO: Corpwis Advisors Private Ltd is the sole lead manager and Link Intime India Private Ltd serves as the registrar for the issue.
Garuda Construction IPO reservation: The company has allocated 50% of the shares in the public offering to qualified institutional buyers (QIB), 15% to non-institutional investors (NII), and 35% of the offer is set aside for retail investors.
Garuda Construction IPO GMP today: Garuda Construction and Engineering IPO GMP today is +22. This indicates Garuda Construction share price was trading at a premium of ₹22 in the grey market on Monday, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Garuda Construction share price is indicated at ₹117 apiece, which is 23.16% higher than the IPO price of ₹95.
Today's IPO GMP suggests a strong listing, based on the grey market activities from the last 7 sessions. The GMP ranges from ₹0 to ₹22, according to experts at investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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.
