Garuda Construction Sets IPO Price Band at ₹92-95, Opens Oct 8

3 Oct 2024 , 01:31 PM

Garuda Construction and Engineering Ltd has announced a price band of ₹92-95 per share for its upcoming Initial Public Offering (IPO), which is expected to raise ₹264 Crore.

The IPO is scheduled to open for public subscription on October 8 and will close on October 10. This offering comprises a combination of a fresh issue of 18.3 million equity shares and an Offer For Sale (OFS) of 9.5 million equity shares from promoter PKH Ventures.

The total size of the IPO is estimated at ₹264 Crore at the upper end of the price range. ₹100 Crore of the proceeds from the fresh issuance will be allocated for working capital needs, while the remaining funds will be directed towards general corporate purposes and potential acquisitions.

The allocation for the issue includes 50% reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. Investors can bid for a minimum of 157 equity shares, with subsequent bids in multiples of 157 shares.

Garuda Construction is involved in civil construction projects, with an order book of ₹1,408.27 Crore. The company’s revenue grew from ₹77.02 Crore in FY 2022 to ₹154.18 Crore in FY 2024, reflecting a CAGR of 26%, while profit after tax increased from ₹18.78 Crore to ₹36.43 Crore during the same period, with a CAGR of 25%. Corpwis Advisors serves as the sole book running lead manager, and Link Intime India is the registrar for the issue.