Garuda Construction and Engineering IPO: 8 Key Things to Know Before Investing
With the Indian construction sector set for rapid expansion, Garuda Construction and Engineering based in Mumbai, offers an intriguing opportunity for investors. Through HDFC Sky's One-Click IPO feature, you can quickly participate in this IPO using your existing UPI account.
But before investing in Garuda Construction and Engineering’s IPO, here are 8 things you must know:
1. Focused Growth in Key Sectors
Garuda has strategically expanded into high-demand sectors like residential, commercial, and industrial projects. This specialization allows the company to capitalize on the growing demand for infrastructure development, particularly in metropolitan regions where urbanization is increasing.
2. Solid Infrastructure Portfolio
Garuda’s portfolio boasts both public and private sector projects, with significant contracts in infrastructure development. The company’s involvement in civil engineering, residential and commercial complexes position it well to benefit from the government's increased infrastructure spending.
3. Expansion into New Markets
With the funds from the IPO, Garuda plans to explore new opportunities in industrial and infrastructure projects. The company’s move beyond traditional construction will help diversify its revenue sources, tapping into lucrative sectors.
4. Strong Anchor Investor Interest
Anchor investors have already committed ₹75 crore, signaling confidence in Garuda's growth trajectory. This pre-IPO investment from institutional players adds credibility to the company’s long-term vision and stability, which retail investors can benefit from.
5. Experienced Leadership Driving Strategic Vision
Led by industry veterans like Pravinkumar Brijendra Kumar Agarwal, Garuda has a leadership team with deep experience in navigating the complexities of large-scale construction and infrastructure projects. Their insight into market trends ensures the company stays competitive in a dynamic industry.
6. Benefitting from Government Initiatives
The Indian government’s initiatives, such as ‘Smart Cities Mission’ and increased allocation to urban infrastructure in Budget 2024, align perfectly with Garuda’s business strategy. The company is well-placed to win large government contracts, giving it a competitive edge.
7. Strong Promoter Holding and Commitment
Garuda’s promoters, including PKH Ventures and Makindian Township Pvt Ltd, hold a significant stake of about 96.81% pre-IPO, indicating their strong commitment to the company’s success. Post-IPO, they will still hold a substantial share, aligning their interests with long-term investors.
8. Targeting Key Urban Markets
The company’s focus on high-growth urban centers ensures steady demand for its services. Garuda’s ability to deliver large-scale projects in these areas further reinforces its position as a key player in India’s booming real estate and infrastructure landscape.
About Garuda Construction and Engineering
Garuda Construction and Engineering Limited, founded in 2010, specializes in residential, commercial, and infrastructure projects. Over the years, it has expanded its capabilities into new sectors, including hospitality, operation and maintenance (O&M), and mechanical, electrical, and plumbing (MEP) services, as well as finishing works, as part of construction services. The company’s track record of successful projects across India highlights its ability to deliver in a highly competitive market.
Key Details of the IPO
- IPO Date: October 8, 2024, to October 10, 2024
- Price Band: ₹92 to ₹95 per share
- Lot Size: 157 shares
- Total Issue Size: ₹264.10 crores (Fresh issue: ₹173.85 crores, Offer for Sale: ₹90.25 crores)
Financials of Garuda Construction and Engineering
Garuda has shown steady financial growth, with increasing revenues and operational efficiency. The fresh issue from the IPO will further improve the company's financial standing, allowing for debt repayment and business expansion. Garuda’s ability to maintain consistent profits and a healthy order book makes it a strong contender in the construction industry.
- Assets: ₹234.84 crore
- Revenue: ₹11.88 crore
- Profit After Tax: ₹3.5 crore
- Net Worth: ₹122.51 crore
- Total Borrowing: ₹0.15 crore
Objectives of the IPO
1. Working Capital Requirements
2. General Corporate Expenses and Unidentified Inorganic Acquisitions
Conclusion
Garuda Construction and Engineering’s IPO presents a promising opportunity for investors seeking exposure to India’s booming infrastructure sector. With its diversified portfolio, solid financials, and clear growth strategy, Garuda is well-positioned for long-term success.
The investment becomes even more seamless with HDFC Sky's One-Click IPO feature, allowing you to invest easily using your existing UPI account. Don’t miss out on this chance to be part of India’s growing infrastructure landscape!