Tue Oct 08 04:12:03 UTC 2024: ## Garuda Construction Makes its Market Debut with ₹264 Crore IPO

**Mumbai, October 8, 2024:** Garuda Construction and Engineering Ltd., a leading civil construction company, has launched its initial public offering (IPO) today, seeking to raise ₹264.10 crore. The IPO price band is set at ₹92-95 per share, with subscriptions open until Thursday, October 10.

Garuda Construction specializes in comprehensive civil construction for various projects including residences, workplaces, hotels, and infrastructure. They boast a strong track record, having completed prestigious projects such as the Delhi Police HQ and the Golden Chariot Hotel in Mumbai.

The company’s financial performance has shown promising growth. Revenue from operations increased from ₹77.02 crore in fiscal 2022 to ₹154.18 crore in fiscal 2024, representing a CAGR of 26%. Profit after tax also grew at a CAGR of 25%, reaching ₹36.43 crore in fiscal 2024.

Garuda Construction’s order book stands at a strong ₹14 billion, indicating a robust pipeline of projects. The company also adopts an asset-light model and focuses on high-margin projects, ensuring profitability.

Analysts are optimistic about the IPO. The company’s strong order book, diverse projects, and higher return on net worth compared to its peers are considered key strengths. While the PE ratio is in line with industry standards, the brokerage firm has assigned a “Subscribe for listing gains” rating due to the potential for long-term growth.

The IPO consists of 1.83 crore new equity shares and an offer for sale (OFS) of 95 lakh equity shares by promoter PKH Ventures Ltd. Proceeds from the fresh issue will be used for working capital requirements and general corporate purposes, including potential inorganic acquisitions.

**Grey Market Premium:** The IPO’s Grey Market Premium (GMP) is currently at +22, indicating a strong demand for the shares. This suggests the listing price could be around ₹117 apiece, a 23.16% premium over the IPO price of ₹95.

Investors interested in this IPO should carefully consider their risk tolerance and consult with financial advisors before making any investment decisions.

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