Mumbai-based Garuda Construction and Engineering refiles DRHP for IPO – ET Infra

Mumbai-based Garuda Construction and Engineering Limited has refiled the Draft Red Herring Prospectus (DRHP) for its initial public offering (IPO). The company had previously filed its draft papers in February.

The offer is being made through the book-building process where not more than 50% of the offer will be available for allocation on a proportionate basis to qualified institutional buyers (QIBs), not less than 15% of the offer shall to non-institutional investors (NIIs) and 35% retail individual bidders.

The civil construction & engineering company will issue shares that have a face value of Rs 5 and consist of a fresh issue of up to 18.30 million equity shares and an offer for sale of up to 9.50 million equity shares by promoter PKH Ventures.

The proceeds from the fresh issue to the extent of Rs 100 crore will be used for funding the working capital requirements and general corporate purposes including unidentified inorganic acquisition.

About Garuda Construction and Engineering
Garuda started its journey in 2010 in the hospitality sector by constructing the Golden Chariot Vasai Hotel & Spa, which was completed in the year 2014.

The company provides end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects and additional services for infrastructure and also hospitality projects.

Civil construction includes the construction of residential, hospitality, industrial, infrastructural, and commercial buildings, construction of concrete building structures, and composite steel structures that are required for civil construction. It provides additional services for infrastructure and also hospitality projects.

The company’s capabilities include constructing concrete building structures as well as composite steel structures. In addition, it also provides O&M and MEP services and finishing works as a part of its construction services, offering complete civil construction and additional services under its banner.

The Mumbai-based company has an order book of 12 ongoing projects out of which 7 have a contract value of more than Rs 100 crore each. This includes a residential project named ‘Trinity Oasis’ in Thane, construction and beautification work of the residential project ‘Garuda Zenith’ and later ‘Garuda Shatrunjay’ in Mumbai, among others.

Garuda Construction is currently engaged in the civil construction of six residential projects, two commercial projects, one industrial project, and one infrastructure with an aggregate order book of Rs 1,408.27 crores, of which the completed projects order value is Rs 546.87 crores.

Garuda Construction financials
For fiscal 2022–23, the company’s revenue from operations increased by 108.63% to Rs 160.69 crore from Rs 77.02 crore in fiscal 2021–22. Profit after tax (PAT) increased 117.20% from Rs 18.78 crore in fiscal 2022 to Rs 40.79 crore in fiscal 2023.

For the eight months ended November 30, 2023, revenue from operations stood at Rs 80.42 crore, and profit after tax stood at Rs 18.73 crore.

Corpwis Advisors Pvt Ltd. is the sole book-running lead manager for the IPO, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

  • Published On May 27, 2024 at 01:38 PM IST

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