The initial public offering (IPO) of Garuda Construction will open for subscription on October 8. The issue closes on October 10. Through the public offer, the company plans to raise nearly Rs 264 crore. Here are 10 things to know about the Garuda Construction IPO before subscribing to the issue.
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1) What is the business overview of Garuda Construction and Engineering?
Garuda Construction provides end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects and additional services for infrastructure and also hospitality projects.
2) What is the industry overview of Garuda Construction and Engineering?
The Indian construction sector has grown at a CAGR of 10.6% from FY18 to FY23 from Rs 2.37 lakh crore to Rs 3.9 lakh crore. The sector is further expected to grow to Rs 6.49 lakh crore by FY30 at a CAGR of 7.5%.
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3) What is the current GMP of Garuda Construction and Engineering?
According to market analysts, the current GMP of Garuda Construction and Engineering is Rs 22, indicating a premium of 23% to the issue.
4) What is the size of Garuda Construction and Engineering IPO?
The issue includes a fresh equity sale worth Rs 173 crore and an offer for sale (OFS) of Rs 90 crore.
5) What is the price band for Garuda Construction and Engineering IPO?
The company has fixed a price band of Rs 92-95 per share, where investors can bid for 157 shares in one lot.
6) What is the structure of Garuda Construction and Engineering IPO?
About 50% in the public offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.
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7) How is the financial performance of Garuda Construction and Engineering?
For the year ending March 2024, the company’s revenue from operations fell 4% year-on-year to Rs 151 crore and the profit after tax also declined to Rs 36.43 crore from Rs 40.79 crore a year ago.
8) What are the objects of Garuda Construction and Engineering IPO?
The proceeds from the fresh issue to the extent of Rs 100 crore will be utilised for funding the working capital requirements and general corporate purposes including unidentified inorganic acquisition.
9) Who are the book running lead managers for Garuda Construction and Engineering IPO?
Corpwis Advisors is the sole book-running lead manager for the IPO, and Link Intime India is the registrar of the offer.
10) When is the share allotment and listing date of Garuda Construction and Engineering IPO?
The share allotment for the IPO will likely be finalised on October 11 and the company is anticipated to list on stock exchanges on October 15.
