About the Company:
Garuda Construction and Engineering Ltd 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.
Wherein, civil construction includes construction of residential, hospitality, industrial, infrastructural and commercial buildings, construction of concrete building structures and composite steel structures which are required for the civil construction.
Company’s end-to-end civil construction starts with detailed route survey, designing, detailed engineering, mobilization of resources, micro scheduling of construction activities, obtaining construction permissions, hiring of contractor / manpower, procurement of material, carrying out construction activities as per approved plan and finally handing over the project
Company’s aim is to increase our execution capabilities in terms of the size and number of civil construction projects across various sectors, namely, residential, residential cum commercial, infrastructure, commercial and industrial.
Company also aims to procure larger contracts with other developers outside our group entities and expand our client base. Along with our growing civil construction base, we intend to take on larger roles in the capacity of developers and we intend to commence such development mandates in due course.
Company is currently engaged in civil construction of six (6) residential projects, two (2) commercial projects, one (1) industrial project and one (1) infrastructure. Currently company’s order book aggregates to Rs.1408.27 crores.
Company’s Revenue Bifurcation for the different projects and services: (in Lakhs)
Company’s Revenue Bifurcation for Private contracts and Government contracts: (in Lakhs)
Company’s Major Ongoing Projects & Total Order Book: (in Lakhs)
Management Team:
- Mr. Pravinkumar Brijendra Kumar Agarwal (Designation: Managing Director and Chairman)
- Mr. Mohit Kapoor (Designation: Whole Time Director)
Objectives of the Issue:
Offer For Sale: (Rs.90.25 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.173.85 cr)
- Working Capital Requirements.
- General Corporate Expenses and unidentified inorganic acquisitions.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Working Capital Requirements | 100 cr |
Positives for the Company:
Exclusive and focused business approach.
- Primary focus of the Company is civil construction of residential and commercial buildings and now we are venturing into industrial, infrastructural projects as well. This focused business approach has enabled us to build a team of people with the right knowledge of relevant domain, skill and experience.
- Company has sought to establish systems and processes that are aligned with specific requirements of our business operations, which has led to development of our core competence and technical expertise in the industry.
Established and proven Track Record.
- Company has established a track record of successfully executing a diverse mix of construction projects i.e., residential, hospitality and commercial projects.
Strong Project Management capacity and Execution Capabilities.
- Company’s goal is to use our project management and execution capabilities to accomplish our projects on schedule while keeping high construction quality. Over the years, company has procured a fleet of construction equipment to ensure high quality and timely execution of our projects.
Visible growth through increasing Order Book.
- In the construction industry, an order book is considered as one of the key indicators of future performance as it represents a portion of anticipated future revenue and provides a brief list of projects undertaken and to be undertaken by the Company.
- Maintaining an order book helps Company to evaluate and improve on the quality of projects undertaken by us. Company aims to undertake projects with potentially higher margins and/or select projects that help us to enhance our reputation, market penetration and perception.
- The quality of our construction and the established relationships with our clients, has enabled us to build our order book.
- As on the date, the contract value of our ongoing and upcoming projects amounted to a total of Rs.1408.27 crores.. With projects spread across the MMR, Arunachal Pradesh, Karnataka, Rajasthan and Punjab, the increasing number of construction work and projects help us maintain the momentum of our growth and enhanced reputation.
Company is Expanding its geographical footprint.
- Company intends to expand our geographical footprint and grow our business throughout the Country. Initially, company’s projects were concentrated in the MMR region.
- Through an increasingly diversified portfolio, Company has broadened our clientele base and hedge against risks in specific areas or projects and protect ourselves from fluctuations, resulting from business concentrations in limited geographical areas. Company’s construction activities now span across regions such as New Delhi, Rajasthan, Karnataka, Tamil Nadu, Amritsar, and Arunachal Pradesh.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 | Upto 30th April 24 |
|---|---|---|---|---|
| Revenue | 77.02 | 161.02 | 154.46 | 11.87 |
| Net Profit | 18.78 | 40.79 | 36.43 | 3.50 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Garuda Construction & Engineering Ltd |
5 | 4.87 | 19.50 | 30.62% | 15.92 |
| PSP Projects Ltd | 10 | 34.16 | 20.00 | 17.73% | 254.13 |
| Capacite Infraprojects Ltd | 10 | 16.09 | 23.61 | 9.35% | 223.44 |
| Vascon Engineers Ltd | 10 | 3.05 | 22.66 | 11.32% | 44.33 |
| Ahluwalia Contracts Ltd | 2 | 55.95 | 22.97 | 17.14% | 238.84 |
| B L Kashyap & Sons Ltd | 1 | 2.33 | 48.67 | 13.38% | 22.02 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 8th October 2024 |
| Issue Closes on | 10th October 2024 |
| Issue Price | Rs.92 -95 |
| Face Value | Rs.5 |
| Retail Category Allocation | 35% |
| Minimum Lot | 157 Shares |
| Minimum Investment | Rs.14,915 |
| Issue Constitutes | 29.87% |
| Issue Size | Rs.264 cr ($ 32 million ) |
| Market Cap | Rs.884 cr ($ 105 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,83,00,000 (Rs.173.85 cr) |
| Equity Shares Offered (OFS) | 95,00,000 (Rs.90.25 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 2,78,00,000 (Rs.264 cr) |
| Equity Shares Prior to the Issue | 7,47,41,742 |
| Equity Shares after the Issue | 9,30,41,742 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 4.87 | 19.50 | 30.62% | 15.92 | Debt Free |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Garuda Construction and Engineering Ltd is a rapidly expanding civil construction company, offering comprehensive services for a wide range of projects, including residential, commercial, residential-cum-commercial, industrial, infrastructure, and hospitality developments. The company specializes in constructing concrete and composite steel structures for these sectors.
Their end-to-end civil construction services encompass all stages of a project, from conducting detailed route surveys and designing to mobilizing resources, micro-scheduling activities, obtaining construction permits, hiring contractors, procuring materials, and executing construction as per approved plans. Finally, they ensure a smooth handover of the completed project. Garuda Construction aims to enhance its capabilities by increasing the number and scale of projects in various sectors. The company is currently working on six residential projects, two commercial projects, one industrial project, and one infrastructure project. With an order book totaling Rs.1,408.27 crores, Garuda Construction is positioned for long-term growth, making it an attractive prospect for investors seeking steady returns in the civil construction industry. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 11th October 2024 |
| Initiation of Refunds | on or Before 14th October 2024 |
| Credit of Equity Shares: | on or Before 14th October 2024 |
| Listing Date: | on or Before 15th October 2024 |
| Company Contact Info: |
|---|
| Garuda Construction and Engineering Ltd 201, A Wing, Fortune 2000 C -3 Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra. Email: compliance@garudaconstructionengineering.com Telephone: +91 22 79635174 Website: www.garudaconstructionengineering.com |
| Registrar to the Issue: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, L.B. S. Marg, Vikhroli (West) Mumbai 400 083, Maharashtra, India Telephone: +91 810 811 4949 Email: garudaconstructions.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
