The Garuda Construction and Engineering IPO opens for subscription on October 8, 2024, with a price band of ₹92-₹95 per equity share. The firm aims to boost its capacity in civil construction, focusing on securing larger contracts outside its group entities and expanding its client base across various sectors.
Key Highlights
- IPO Date:
- Opens: October 8, 2024
- Closes: October 10, 2024
- IPO Price Band: ₹92 to ₹95 per equity share (face value ₹5).
- Lot Size: 157 equity shares and multiples thereafter.
- Anchor Investors Allocation: Scheduled for October 7, 2024.
- Issue Details:
- Fresh Issue: 1.83 crore equity shares
- Offer for Sale: 95 lakh equity shares by promoter PKH Ventures Ltd.
- Objective:
- Fund operational needs
- General corporate purposes
- Possible acquisitions.
- Listing Date:
- Expected listing on October 15, 2024, on both BSE and NSE.
- Basis of allotment finalized by October 11, 2024.
- GMP Today:
- The grey market premium is +₹22, indicating a 23.16% premium over the upper IPO price band of ₹95.
- Peers Comparison:
- PSP Projects (P/E 20), Capacite Infraprojects (P/E 23.61), Vascon Engineers (P/E 22.66), Ahluwalia Contracts (P/E 22.97), B L Kashyap & Sons (P/E 48.67).
- Financial Performance:
- Revenue (FY22): ₹7,702.08 lakhs
- Revenue (FY24): ₹15,417.83 lakhs (CAGR 26.03%)
- PAT (FY22): ₹1,878.22 lakhs
- PAT (FY24): ₹3,643.53 lakhs (CAGR 24.72%).
Peer Performance
| Company | P/E Ratio | Operating Profit Margin (%) FY23 |
|---|---|---|
| PSP Projects Ltd | 20 | 16.90% |
| Capacite Infraprojects Ltd | 23.61 | 14.50% |
| Vascon Engineers Ltd | 22.66 | 12.60% |
| Ahluwalia Contracts (India) Ltd | 22.97 | 18.70% |
| B L Kashyap & Sons Ltd | 48.67 | 10.80% |
| Garuda Construction and Engineering | N/A | 34.80% |
Financial Growth
Garuda Construction has shown significant financial growth over the last two years:
- Revenue Growth: From ₹7,702.08 lakhs in FY22 to ₹15,417.83 lakhs in FY24, achieving a Compound Annual Growth Rate (CAGR) of 26.03%.
- Profit Growth: From ₹1,878.22 lakhs in FY22 to ₹3,643.53 lakhs in FY24, reflecting a 24.72% CAGR.
Key Takeaways for Investors
- Strong Financials: With significant growth in revenue and profit, the company is well-positioned to expand its operations and capture larger projects.
- Grey Market Premium (GMP): The current GMP of ₹22 suggests a strong debut, with an estimated listing price of ₹117, approximately 23.16% higher than the upper IPO price band.
- Peer Benchmarking: Garuda outperforms many of its peers in terms of operating profit margin, showing operational efficiency.
- Risks: Investors should be aware of potential market volatility and sectoral competition in civil construction.
How to Apply for the Garuda Construction IPO
To apply for the IPO, follow these steps:
- Visit your stockbroker’s platform and select the ‘IPO’ section.
- Choose ‘Garuda Construction and Engineering IPO’ from the list.
- Enter the number of shares and price within the given price band.
- Submit your bid and complete the payment process.
Conclusion
Garuda Construction’s IPO offers an opportunity to invest in a growing civil construction company with strong financials and a promising future. With a positive outlook in the grey market, investors might consider this as a worthwhile addition to their portfolios.
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Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research before making any investment decisions. The author and publisher do not hold any responsibility for financial losses or gains incurred from using this information. Past performance does not guarantee future results.