Garuda Construction and Engineering Limited IPO

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Garuda Construction and Engineering Private Limited offers end-to-end civil construction services for residential, commercial, mixed-use, infrastructure, and industrial projects, alongside additional services for infrastructure and hospitality projects.

Comprehensive Civil Construction Services

Garuda’s end-to-end services cover the entire construction lifecycle, from the initial stages to project completion. These services include:
i. Detailed route surveys and engineering designs
ii. Mobilization of resources and micro-scheduling of construction activities
iii. Obtaining construction permissions, soil/water testing, and contractor/manpower hiring
iv. Material procurement, lab testing, and execution of construction as per approved plans
v. Operations and maintenance services (“O&M”), Mechanical, Electrical, and Plumbing (“MEP”) services, and finishing work

The construction work involves both concrete building structures and composite steel structures, which are procured from subcontractors based on specific designs, provided either by overlying developers or Garuda’s own engineering teams. This enables the company to deliver complete construction services under its banner.

Order Book and Growth Prospects

As of the date of filing the Red Herring Prospectus, Garuda’s order book aggregates to ₹1,40,827.44 lakhs, reflecting the company’s significant growth prospects and the demand for its construction services. This robust pipeline positions Garuda to continue scaling its operations and expand into new sectors and territories.

Conclusion

Garuda Construction and Engineering Private Limited is poised for significant growth as it moves from an in-house contractor to an independent construction and development firm. With a diverse project portfolio and an expanding order book, the company is well-positioned to serve a broader range of clients and undertake larger and more complex civil construction projects.

Objects of the Garuda Construction and Engineering Limited IPO:

The Company proposes to utilize the funds being raised to fund the following objectives: i. Working Capital Requirements, ii. General Corporate Expenses and Unidentified Inorganic Acquisitions. Total number of shares are:- i. Fresh issue is 18,300,000 shares. ii. Offer for sale is 9,500,000 shares.

Garuda Construction and Engineering Limited IPO Details:

Open Date: Oct 08 2024
Close Date: Oct 10 2024
Total Shares: 27,800,000
Face Value: ₹ 5 Per Equity Share
Issue Size: 264.10 Cr.
Lot Size: 157 Shares
Issue Price: ₹ 92 - 95 Per Equity Share
Listing At: NSE,BSE
Listing Date: Oct 15 2024

Promoters And Management:

Pravinkumar Brijendra Kumar Agarwal, aged 53 years, is the Managing Director and Chairman of the Company. He has been associated with the Company since September 21, 2010. He has more than two (2) decades of experience in various businesses like Construction & Development, hospitality and management services. He was appointed as the Managing Director and Chairman pursuant to a resolution passed by the board dated September 01, 2023. He is currently responsible for overall management and affairs of the Company and entire group including devising investment strategies, developing industry networks for further business development and overall development of the business of the Company. Mohit Kapoor, aged 31 years, is the Whole Time Director of the Company. He has been associated with the Company as the Whole-Time director since September 01, 2023. He holds a Bachelor’s degree in Technology in Civil Engineering since the year 2018, and Diploma in Engineering (Civil) from the Lingaya’s University, Faridabad since the year 2015. He also holds a Master of Business Administration degree from Amity University, Uttar Pradesh since the year 2022. He was associated with the Company as a Maintenance Engineer since May 2021 and has also overseen the civil work at the New Delhi Police Headquarters. Deepak Kumar, aged 48 years, is our Non – Executive Director since September 01, 2023. He worked with the aviation division of Qing Ambay City Developers Corp. Ltd. For a period of 19 years and worked in the organization for another year as Deputy Manager in the Sales and Marketing Department. He holds a Bachelor’s Degree in Arts from Delhi University since the year 2000.

Financials of Garuda Construction and Engineering Limited IPO:

Particulars April-24 FY24 FY23 FY22
Revenue 11.87 154.17 160.68 77.02
EBITDA 4.7 50.08 55.99 27.16
EBITDA Margin 39.60% 32.48% 34.84% 35.26%
PAT 3.5 36.43 40.79 18.78
PAT Margins 29.48% 23.62% 25.38% 24.38%

Comparison With Peers:

Companies Revenue EBITDA PAT MCap P/E
Garuda Construction 154.17 50.08 36.43 883 24.26
PSP Projects 2,565 293 121 2,594 21.2
Capacite Infraprojects 2,071 406 155 3,127 20.2
Vascon Engineers 1,108 111 66 1,336 20.3
Ahluwalia Contracts (India) 4,011 602 356 7,089 19.91
B L Kashyap & Sons 1,342 136 63 2,040 35

Recommendation on Garuda Construction and Engineering Limited IPO:

Lead Manager of Garuda Construction and Engineering Limited IPO:

  1. Corpwis Advisors Private Limited

Registrar of Garuda Construction and Engineering Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Garuda Construction and Engineering Limited 201, A Wing, Fortune 2000 C -3 Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Phone: +91 22 79635174 Email: compliance@garudaconstructionengineering.com Website: https://garudaconstructionengineering.com/

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