Garuda Construction and Engineering Limited IPO: A Deep Dive into Dates, Pricing, and Investment Potential

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Garuda Construction and Engineering Limited

Garuda Construction and Engineering Limited – A name that recks with quality in civil construction across India since 2010. Very soon, the company would be coming to the stock market through its upcoming IPO. A Mumbai-based company, it has created a niche for itself by undertaking projects like Golden Chariot Vasai Hotel & Spa, which indicate its excellence in both the residential and commercial sectors. Now, with the Garuda Construction IPO slated for October, the company will be viewing its growth curve with public funding.

Garuda IPO Launch Dates, Price, and More

The Garuda IPO is set to open between the dates of October 8 and October 10, 2024, to fetch its subscription windows. The market practitioners view this window as a very promising opportunity with the price being band-stated at ₹92 and ₹95 per share. Face value of each share is ₹5 and the issue size would be approximately ₹264.10 Crores. The entire issue is split into a fresh issue and offer for sale to existing shareholders, mainly through PKH Ventures Ltd. The minimum application requires 157 shares which would cost ₹14,915 at the upper end of the price band.

Here’s a tabular representation of the key dates for Garuda Construction and Engineering Limited IPO based on the information from various sources:

Event	Date
IPO Opens	October 8, 2024
IPO Closes	October 10, 2024
Basis of Allotment Finalized	October 11, 2024
Refunds Initiated	October 14, 2024
Credit of Shares to Demat	October 14, 2024
Listing Date	October 15, 2024

Here’s the updated table summarizing details regarding the Garuda Construction and Engineering Limited IPO:

IPO Details	Information
Company Name	Garuda Construction and Engineering Limited
IPO Size	₹264.10 crore
New Issue	₹173.85 crore (Fresh Issue) + ₹90.25 crore (Offer For Sale)
Price Band	₹92 – ₹95 per share
Face Value	₹5 per share
Listing Exchange	Not specified (likely NSE or BSE)
Minimum Bid Lot	157 shares
Minimum Investment	₹14,915 (at the upper price band)
Issue Type	Book-built Issue
Issue Category	Mainboard IPO
QIB Allocation	50%
NII Allocation	15%
Retail Allocation	35%
Company Sector	Construction and Engineering

This table reflects the specifics of the Garuda Construction and Engineering Limited IPO, based on the information provided.

Garuda IPO Financial

The financials have it that Garuda Construction and Engineering Limited reported a revenue of ₹154.18 crore and a profit after tax (PAT) at ₹36.44 crore for fiscal year 2024, which is lower than those recorded by the preceding fiscal. This result depicts the operational efficiency and market standing of the company. With an order book valued above ₹1,408.27 crores and projects in the residential, commercial, industrial, and infrastructure sectors, the company appears to be in relatively healthy financial health, underpinned by the diversified portfolio of projects.

Here is a summary table of Garuda Construction and Engineering Limited’s financial performance:

Financial Metric	31 Mar 2024	31 Mar 2023	Change (%)
Assets	₹228.49 Cr	₹176.35 Cr	+29.5%
Revenue	₹154.47 Cr	₹161.02 Cr	-4%
Profit After Tax (PAT)	₹36.44 Cr	₹40.8 Cr	-11%
Net Worth	₹119.01 Cr	₹82.61 Cr	+44%
Reserves and Surplus	₹81.65 Cr	₹70.13 Cr	+16.4%
Total Borrowing	₹0.15 Cr	₹0.19 Cr	-21%

Summary:

Garuda Construction and Engineering Limited have gone about their financial performance without any compromise in the last fiscal year. Summarized below:

Assets: The assets of the company have gone up by about 29.5% from FY23 ₹176.35 Cr to FY24 ₹228.49 Cr. It indicates significant expansion or investment in the operations of the company.
Revenue: A 4% decrease has been witnessed here, be it from ₹161.02 Cr in FY23 to ₹154.47 Cr in FY24. This kind of reduction may be caused due to the attack of some variables related to market conditions, delay in the project, or a shift in business strategy.

PAT down 11% at ₹36.44 Cr from ₹40.8 Cr; this might be owing to increased expenses, margins dipped, or some specific one-time costs that are not factored in the revenue numbers.

Net Worth and Reserves: Net worth as well as the reserves went up by 44 percent and 16.4 percent respectively. Hence, this raises an optimism that shareholder equity is growing due to increased retained earnings or capital infusion.
Borrowings: Total borrowings decreased by 21 percent, which may raise hopes that the company’s financial health has improved or it is now less dependent on loans for running the business.

Overall, while the revenue and profit of Garuda Construction and Engineering Limited decreased, an increase in significant assets and net worth indicates an investment in order to increase future growth. The reduction in borrowings should, therefore, be perceived as a good indicator of firm stability. That being said, it is important for investors to view these changes in perspective-made possible by an understanding of the conditions in an industry, project specifics, and broader economic impacts-as a means of judging the financial condition and investment potential of the company.

Garuda Construction and Engineering Limited IPO GMP and Subscription

Analysis of data as from your report:

GMP or Grey Market Premium:

Current GMP: ₹5

GMP is the price for which investors are willing to pay over the issue price in the grey market, which is the unofficial market of IPO shares. The GMP of ₹5 reflects that the interest in the issue is very mild. Here one can expect that the investors may wait for small premium on listing.

Subscription Details:

QIBs: Qualified Institutional Buyers.
Subscription: 0.02 times
That may be a sign that institutional investors are not that much interested, which is not particularly comforting since institutionals usually take the biggest share of an IPO.
Non-Institutional Buyers:
Total Subscriptions: 1.11 times
Big Non-Institutional Investors (bNII – bids above ₹10L): 0.45 times
Small Non-Institutional Investors (sNII-bids below ₹10L): 2.42 times
Non-institutional investors have mixed response with smaller investors more interested than the larger ones.
Retail Investors:
Subscription: 3.52 times

The retail interest is relatively high, however, which would be a good augur for an IPO, usually boding well for great public interest.

Total Subscription:

-The IPO has been subscribed at 1.96 times, implying almost two times more bids received than the total shares on offer, thereby pointing to a moderate interest from the market.

Interpretation:

Moderate Interest: The overall subscription suggests that there is a moderate interest in Garuda Construction and Engineering Limited’s IPO. The retail segment seems particularly enthusiastic.
QIB Caution: Very low subscription from QIBs may be a cause of concern. Any good IPO would attract more QIBs with the potential for huge investment besides a thorough analysis.
GMP Impact: At ₹5, the GMP does not look so remarkable as a listing gain indicator but still indicates a small positive sentiment in the grey market.

Considerations for Investors: – Listings Gains. Under the current GMP, one would expect modest listing gains, but there is no interest displayed by the QIBs, so the listing will underperform. It includes

Long Term: long-term prospects include checking the company’s soundness based on its fundamentals, future projects lined up, industry outlook, and management quality while considering investments for a long time. Market Conditions: The general mood of the market at the time the stocks are floated will also determine how the stock performs in its initial trade date. Please note that this information comes from data available up to October 8, 2024, and market conditions may change overnight. For better guidance, always refer to financial consultants before investing.

Garuda Construction and Engineering Limited EPS and PE Ratio

Based on the available data up to October 1, 2024, of Garuda Construction and Engineering Limited, which is related to its financial performance and IPO details, some inference regarding its EPS and P/E ratio may be made, although not directly drawn from the recent financial statement or data after the IPO, as its specific, exact current values for these metrics are not available in your question.

EPS Calculation

Pre-IPO EPS: Assuming the above financial performance, Profit After Tax for Garuda Construction and Engineering Limited for FY 2024 amounts to ₹36.44 Cr. For calculating EPS, we would normally divide this by the total outstanding equity shares post-IPO. But since we are not given the exact number of outstanding shares after the IPO-both fresh issue and offer for sales-let us assume a rough figure going by the size of the IPO and general market practices:
IPO had 27,800,000 shares. Let’s pretend that these represent an enormous proportion or all the outstanding shares, which I know is an oversimplification for this purpose:

EPS=PAT/Number of Shares=36.44 Cr/27.8 million≈364.4 million/27.8 million≈13.07 INR/share

This takes for granted all shares are outstanding post-IPO, which is not strictly correct but could be a good ball-park figure for pre-IPO EPS calculation.

P/E Ratio:

The other value is, well:

P/E Ratio It will require the current market price of the shares post-listing. We don’t have an actual trading price since the IPOs traded at a price only for book building. So we can use the upper end of the price band for the IPO, which was ₹95 per share:

P/E Ratio =
Market Price per Share/EPS
If we use the hypothetical EPS calculated above:

P/E Ratio=95 INR/(13.07 INR/share)≈7.27

This approximation of P/E ratio is obtained from simple usage of provided IPO price band and simplified EPS calculation.

Important Notes:

All the calculations carried out are greatly simplified and suppose that the total IPO share count present the exact corporate outstanding, which may not be the case for real corporate forms and changes in equity post-IPO.
With real market performance after the IPO and changes in share counts due to several corporate actions, the real EPS and P/E ratio would have been different.
If exact and current figures are desired, then one would check the post-IPO listing’s financial statement or reports from financial analysts for a nearer approximation of the EPS and P/E ratio.

This information is based on data up to the IPO and therefore be viewed more as an educational estimate than investment advice. You can use current figures available through more recent financial reports or market data.

Investment Risks and Opportunities

Garuda IPO investment involved, at the same time, threat and an opportunity of possible growth. Here, it can be argued that this company’s diversification into different project types, along with well-established presence in key markets like Mumbai, should work like a growth catalyst. On the other hand, sector-specific issues related to project delays and cost overruns along with broader economic factors pertaining to any infrastructure spending are risky.

The Garuda Construction IPO is a strategic step towards company funding for growth and leverage on the boom in infrastructure in India. To an investor, such an opportunity presents a chance to share in a company that is well-based in the construction industry. However, just like all investments, one should look at market conditions and what kind of risk one can take and not before committing.