Garuda Construction Sets IPO Price Band for Rs 264-Crore Offering

Garuda Construction and Engineering Ltd plans a Rs 264-crore Initial Public Offering, setting a price band of Rs 92-95 per share. The IPO, a mix of fresh and Offer For Sale shares, aims to raise funds for working capital and corporate purposes. Public subscription opens October 8.

Garuda Construction and Engineering Ltd announced on Thursday that it has set a price band of Rs 92-95 per share for its Rs 264-crore Initial Public Offering (IPO).

The public offering will be open for subscription from October 8 to October 10, the Mumbai-based company disclosed.

The IPO comprises a fresh issue of 1.83 crore equity shares and an Offer For Sale (OFS) of 95 lakh equity shares by promoter PKH Ventures. The total IPO size is expected to reach Rs 264 crore at the upper price range.

The company plans to allocate Rs 100 crore from the fresh issue proceeds for working capital, while the rest will go towards general corporate purposes, including potential acquisitions.

Half of the IPO is designated for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors. Investors can submit bids starting from 157 equity shares, with additional bids in multiples of 157 shares.

Garuda Construction and Engineering is currently working on six residential projects, two commercial projects, one industrial project, and an infrastructure project. The company has an order book amounting to Rs 1,408.27 crore.

Financially, the company's revenue has grown from Rs 77.02 crore in fiscal 2022 to Rs 154.18 crore in fiscal 2024, indicating a 26 percent CAGR. Profit after tax increased from Rs 18.78 crore to Rs 36.43 crore, reflecting a 25 percent CAGR. Corpwis Advisors is serving as the sole book running lead manager, with Link Intime India as the issue's registrar.

(With inputs from agencies.)