Garuda Construction and Engineering Secures Rs 75 Crore from Anchor Investors Before IPO Launch

Garuda Construction and Engineering Ltd announced on Monday that it has secured Rs 75 crore from anchor investors. This announcement comes just before the company's initial public offering (IPO) opens for public subscription. The IPO will be available from October 8 to October 10, with a price range set between Rs 92 and Rs 95 per share.

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The company has allocated 78,95,138 equity shares at Rs 95 each to seven anchor investors. These investors include 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. The total size of the IPO is estimated at Rs 264 crore at the higher end of the price band.

IPO Details and Financial Plans

The IPO consists of a fresh issue of 1.83 crore equity shares and an offer for sale (OFS) of 95 lakh equity shares by promoter PKH Ventures. From the fresh issuance, Rs 100 crore will be used for working capital needs. The remaining funds will go towards general corporate purposes, including potential unidentified inorganic acquisitions.

Garuda Construction is based in Mumbai and is actively involved in various construction projects. These include six residential projects, two commercial projects, one industrial project, and one infrastructure project. The company currently holds an order book valued at Rs 1,408.27 crore.

Financial Performance and Management

On the financial side, Garuda Construction's revenue from operations increased significantly from Rs 77.02 crore in FY22 to Rs 154.18 crore in FY24. This represents a Compound Annual Growth Rate (CAGR) of 26 per cent. Additionally, profit after tax rose from Rs 18.78 crore in FY22 to Rs 36.43 crore in FY24, marking a CAGR of 25 per cent.

Corpwis Advisors is serving as the sole book-running lead manager for this issue. Link Intime India has been appointed as the registrar for the IPO process. These roles are crucial in ensuring a smooth execution of the public offering.

The company is poised for growth with its diverse project portfolio and strong financial performance. The funds raised through this IPO will support its expansion plans and operational needs effectively.