Garuda Construction and Engineering Ltd recently announced the successful raising of INR 75 crore from anchor investors ahead of its upcoming initial public offering (IPO). The IPO, priced between INR 92 and INR 95 per share, includes a fresh issue and an offer for sale, totalling an estimated INR264 crore. The company aims to use INR 100 crore for working capital and other corporate purposes. With a strong order book and significant revenue growth, Garuda is engaged in multiple construction projects across various sectors.
Garuda Construction and Engineering Ltd announced earlier this week that it has successfully raised INR 75 crore from anchor investors, just a day before the opening of its initial share sale for public subscription. Among the anchor investors are AG Dynamic Funds, Trust Mutual Fund, Maybank Securities Pte Ltd, North Star Opportunities Fund VCC, Resonance Opportunities Fund, Bridge India Fund, and Cognizant Capital Dynamic Opportunities Fund.
According to a circular published on the BSE website, Garuda Construction allocated 7,895,138 equity shares at INR95 each to seven funds. The initial public offering (IPO), with a price band set between INR 92 and INR 95 per share, is scheduled to open for public subscription shortly and will close in the next few days. The IPO consists of a fresh issue of 1.83 crore equity shares and an offer for sale (OFS) of 950,000 equity shares by the promoter, PKH Ventures.
The total size of the IPO has been estimated at INR264 crore at the upper end of the price band. The company plans to utilise proceeds from its fresh issuance, amounting to INR100 crore, for working capital requirements, while the remaining funds will be directed towards general corporate purposes, including potential unidentified inorganic acquisitions.
Mumbai-based Garuda Construction is currently engaged in civil construction across six residential projects, two commercial projects, one industrial project, and one infrastructure project, with an order book totalling INR1,408.27 crore. From a financial perspective, the company has seen its revenue from operations increase from INR 77.02 crore in FY22 to INR 154.18 crore in FY24, representing a Compound Annual Growth Rate (CAGR) of 26 per cent. Furthermore, profit after tax rose from INR 18.78 crore in FY22 to INR 36.43 crore in FY24, marking a CAGR of 25 per cent. Corpwis Advisors serves as the sole book-running lead manager for the IPO, while Link Intime India acts as the registrar for the issue.
In conclusion, Garuda Construction's IPO marks a significant step in its growth strategy, reflecting investor confidence amid robust financial performance. With substantial proceeds aimed at enhancing operational capabilities, the company is well-positioned to capitalize on emerging opportunities in the construction sector, further solidifying its market presence in the coming years.
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