Garuda Construction and Engineering IPO: Valuation, Date & GMP

Garuda Construction and Engineering Limited IPO-Complete Overview

Garuda Construction and Engineering Limited IPO a Mainboard IPO is a book-built issue of Rs.264.10 crore (2.78 crore Shares) by Garuda Construction and Engineering Limited. The company was founded in 2010 and operates as a construction company.

Besides additional services for infrastructure and hospitality projects, the company offers full construction services for residential, commercial, residential/commercial, infrastructure, and industrial projects. It also offers finishing work as a component of construction services, as well as operation and maintenance (O&M) and mechanical, electrical, and plumbing (MEP) services.

This new IPO is to be launched on 8 October 2024, and the initial public offering of this upcoming IPO will end on 10 October 2024.

Garuda Construction and Engineering Limited IPO Overview

The Rs.264.10 crore Garuda Construction and Engineering Limited IPO comprises a fresh issue of 1.83 crore Shares (Rs.173.85 crore) and an offer for sale (OFS) of 0.95 crore Shares (Rs.90.25 crore) out of which 35% is allocated to retail investors, 50% to institutional investors, and 15% to non-institutional investors. 

The Garuda Construction IPO date is from 8 October to October 10, 2024. The IPO listing date is on Tuesday, October 15, 2024, and it will be listed at BSE and NSE. Garuda Construction and Engineering Limited share price is between Rs.92 to Rs.95 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Garuda Construction and Engineering: Product Portfolio

The work line comprises various construction and post-construction services to its clients. Below are some images of the complete projects by the company:

 

Company Financial

The company’s revenue fell by -4% and PAT decreased by -11% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in lac)

 

Project-wise revenue Bifurcation

(Values in lac)

 

Contract-wise Revenue Bifurcation 

(Values in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Acquisitions of unknown inorganic matter.

• Requirements for working capital.

• Corporate purposes.
  
  

Peers of Garuda Construction and Engineering Ltd.

 

Evaluation

The IPO price is between Rs.92 to Rs.95 for each Share.

Evaluation of P/E Ratio

Considering the period of FY 2024, with an EPS of Rs.4.87 from the last year, the resulting P/E ratio is 19.51x.

Considering the weighted EPS of Rs.4.67 for the last three years, the P/E ratio is 20.34x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 27.58x.

In simple words, the P/E ratio of Garuda IPO (19.51x), compared with the industry’s average P/E of 27.58x, has an undervaluation (on a P/E Ratio basis only). Hence the price of the Share seems fairly (fully) priced for the investors when considered based on the average P/E ratio of the industry. 

 

IPO's Strengths 

• The company is currently branching out into industrial and infrastructural projects in addition to its primary concentration of developing residential and commercial structures.

• A well-established and dependable track record. The Golden Chariot Vasai Hotel & Spa and Golden Chariot Boutique Hotel in 2015 are only two of the company's many notable development projects. The company started working on residential projects in MMR in 2017 and has now finished two. The company concentrated on civil engineering in MMR, Tamil Nadu, and Karnataka from 2010 to 2017.

• Strong execution and project management skills.

• Robust financial results and a sound balance sheet.

• Positive growth as evidenced by an expanding order book.

• Knowledgeable management group, directors, and promoter.
  
  

IPO’s Weaknesses 

• The company stated that although it has significant contracts with unaffiliated parties and for building projects in its order book, it is not overly exposed to work orders or Engineering Procurement Contracts (EPC) from companies other than the promoter group entities of the company.

• Due to the lack of non-compete agreements, the company runs the risk of connected group entities directly competing with Garuda Construction, which could endanger growth and future commercial possibilities.

• Its financial health may be damaged if it fails to win new contracts, its current contracts are terminated, or it encounters delays.

• Its projects depend on the provision of services and raw materials from other parties, and their failure to do so could have a negative impact.

• In the previous fiscal years, it had negative cash flows from investing, operating, and financing activities. Constant negative cash flows could affect its cash flow needs.

 

Garuda Construction and Engineering Limited IPO GMP Today

Garuda Construction IPO GMP today is Rs.0 as of 03 October 2024. 

Garuda Construction and Engineering Limited IPO Timetable (Tentative)

The IPO open date is from October 08 to October 10, 2024, with IPO allotment on October 11, 2024, refund initiation on October 14, 2024, and listing on Thursday, October 15, 2024.

 

Garuda Construction and Engineering Limited IPO Details 

The IPO with a face value of Rs.5 per Share is set to start on October 08, 2024, close on October 10, 2024, and offers a total issue size of 27,800,000 Shares between Rs.92 to Rs.95 per Share with a Lot size of 157 Shares and will be listed at BSE and NSE.

Garuda Construction and Engineering Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (157 Shares) amounting to Rs.14,915 and 13 Lots (2041 Shares) amounting to Rs.1,93,895 respectively, while for HNI investors, the minimum Lot is 14 (2,198 Shares) amounting to Rs.2,08,810.

Garuda Construction and Engineering Limited IPO Reservation

Promoters and Management of Garuda Construction and Engineering Ltd. 

• Pravinkumar Brijendra Kumar Agarwal

• PKH Ventures Limited

• Makindian Township Private Limited.
  
  

Garuda Construction and Engineering Limited IPO Lead Managers

• Corpwis Advisors Private Limited
  
  

Dividend Policy

The company has not paid any dividends in the last three fiscals.

Conclusion

Over the past fiscal year(s), the company's investing activities have resulted in negative cash flow. The company is currently holding an IPO for the public to achieve its goals. 

We hope that the information provided in this blog aids in your education regarding the financial performance of the company. Because it will provide you with trustworthy information on the company's insights, financials, and historical performance. This blog will be very helpful to you if you're looking for information about the upcoming IPO. 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.

  

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