Garuda Construction and Engineering Limited

About Garuda Construction and Engineering Limited

Incorporated in 2010, Garuda Construction and Engineering Limited is a civil construction company. It provides end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects. It also provides operations and maintenance (O&M) as well as electrical and plumbing (MEP) services. 

It is present in MMR (Mumbai Metropolitan Region), New Delhi, Karnataka, Tamil Nadu, Arunachal Pradesh, Punjab, and Rajasthan. It has completed 9 projects so far and has 12 ongoing projects, including 6 residential projects, 2 commercial projects, 1 industrial project, and 1 infrastructure. 

Some of its ongoing projects include Trinity Oasis at Thane, Garuda Shatrunjay in Mumbai, and a residential building at Amritsar. It is also developing a state-of-the-art township with amenities such as a sports city of ~30 acres, greenbelts, recreational facilities, educational, commercial and health establishments and more. 

It is predominantly an EPC (Engineering, Procurement, Construction) company and is not a main concessionaire under government contracts or private constructions. 

As of 31 August 2024, the company had a total order book of ₹1,408 crore. Between FY22 and FY24, the company saw a 26% CAGR rise in its revenue from operations and over 24% in its net profit. Moreover, the construction sector is expected to grow at a CAGR of 7.5% between FY23 and FY30 to reach a market size of ₹6,494 billion, which could indirectly benefit the company. 

Now, Garuda Construction and Engineering Limited is launching its initial public offer (IPO). The total IPO issue size is ₹264.10 crore, comprising fresh issue, aggregating to ₹173.85 crore, as well as an offer for sale, aggregating to ₹90.25 crore. The money raised from the fresh issue will be utilised for working capital requirements and general corporate expenses. Its shares will be listed on the NSE and BSE.

Here are key details about the Garuda Construction and Engineering IPO:

Financial snapshot

Here’s a quick look at Garuda Construction and Engineering Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Track record of successfully executing a diverse mix of construction projects in the residential, hospitality and commercial sectors, such as the construction of the Golden Chariot Vasai Hotel & Spa, amongst others.
2. The company employs third-party vendors for equipment and keeps its asset base light to enhance cost efficiency and minimise operational disruptions.
3. The company's exclusive and focused business approach in civil construction has enabled it to establish systems and processes that are aligned with the specific requirements of business operations.
4. Strong project management capacity and execution capabilities, having procured a fleet of construction equipment. 
5. Strong financial performance with EBITDA margins of 35%, 34%, and 32% in FY22, FY23, and FY24, respectively.
6. Visible growth through increasing order book with projects across MMR, Arunachal Pradesh, Karnataka, Rajasthan and Punjab. 

Risks and threats

1. Operates in the construction industry, which is cyclical and sensitive to changes in the economy. 
2. Has experienced negative cash flow in the last three fiscals. 
3. Significantly dependent on the real estate market in the Mumbai Metropolitan Region.
4. It faces competition from PSP Projects, Capacite Infraprojects, Vascon Engineers, Ahluwalia Contracts (India), and B L Kashyap and Sons.
5. Operates a capital-intensive business with requirements of ₹95 crore as of 30 April 2024. 
6. The company relies on third parties for services, and the supply of raw materials for its projects, and the third party’s inability to provide these could adversely affect the company’s business.

Garuda Construction and Engineering Limited IPO details

| Garuda Construction and Engineering Limited IPO date

According to the offer document filed by the company with the SEBI, the Garuda Construction and Engineering IPO’s opening date – in other words, the Garuda Construction and Engineering IPO launch date – will be 8th October 2024. The Garuda Construction and Engineering IPO closing date is 10th October 2024. After this, investors will be updated about the allotment status on 11th October 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 14th October 2024. The Garuda Construction and Engineering IPO listing date is 15th October 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

| Garuda Construction and Engineering Limited IPO Price Band

The IPO is a fresh issue and an offer for sale. The Garuda Construction and Engineering IPO price band has been set between ₹90 and ₹95 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Garuda Construction and Engineering IPO listing price will be determined on 15th October 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Garuda Construction and Engineering Limited IPO Lot size

The Garuda Construction and Engineering IPO details have been declared. The Garuda Construction and Engineering IPO lot size, is set at 157 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Garuda Construction and Engineering IPO issue size is approx ₹264 crore. 

How to pre-apply for the Garuda Construction and Engineering Limited IPO?

You can pre-apply for the Garuda Construction and Engineering Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Garuda Construction and Engineering Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Garuda Construction and Engineering Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Garuda Construction and Engineering Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Garuda Construction and Engineering Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Garuda Construction and Engineering Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Garuda Construction and Engineering Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Garuda Construction and Engineering Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Garuda Construction and Engineering Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Garuda Construction and Engineering Limited IPO

To apply for the Garuda Construction and Engineering Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Garuda Construction and Engineering Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Garuda Construction and Engineering Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.