Monday, May 27, 2024

Mumbai-based Garuda Construction and Engineering refiles DRHP for IPO

Mumbai-based Civil Construction and Engineering firm Garuda Construction and Engineering Limited, has refiled its Draft Red Herring Prospectus (DRHP) for its initial public offering (IPO).

Previously, the company had filed its DRHP in the month of February 2024. 

The IPO has a face value of Rs 5 and consists of a fresh issue of up to 18.30 million equity shares and an offer for sale of up to 9.50 million equity shares by PKH Ventures (“Promoter Selling Shareholder”). 

The Offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.

The proceeds from the fresh issue, to the extent of Rs 100 crore for funding the working capital requirements; and general corporate purposes including unidentified inorganic acquisition.

Garuda Construction and Engineering provides end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure, and industrial projects and additional services for infrastructure and also hospitality projects, wherein, civil construction includes the construction of residential, hospitality, industrial, infrastructural, and commercial buildings, construction of concrete building structures and composite steel structures that are required for the civil construction. It provides additional services for infrastructure and also hospitality projects. 

The Company's capabilities include constructing concrete building structures as well as composite steel structures. In addition, it also provides O&M and MEP services and finishing works as a part of its construction services, offering complete civil construction and additional services under its banner.

Garuda Construction started its journey in the year 2010 hospitality sector by constructing the Golden Chariot Vasai Hotel & Spa, which was completed in the year 2014 and in the year 2015 it renewed and refurbished Golden Chariot, the Boutique Hotel, with its promoter, PKH Ventures Limited. In the year 2017, it commenced the civil construction of residential buildings in the Mumbai Metropolitan Region (“MMR”) named the Rivali Park, Kandivali. In 2021, it concluded the construction of twin towers of seventeen (17) stories each of the Delhi Police Headquarters, with its concessionaire M/s. Eternal Building Assets Private Limited, (a group company), a marquee project, measuring a total construction area of 89,140.53 Sq. Mtrs.

The Mumbai-based Company has an order book of 12 ongoing projects, of it has 7 projects with a contract value of more than Rs 100 crore each which includes a residential project named ‘Trinity Oasis’ in Thane, Maharashtra, construction and beautification work of the residential project ‘Garuda Zenith’ later ‘Garuda Shatrunjay’ in Mumbai, Maharashtra, slum rehabilitation project in Mumbai, Maharashtra, construction, development and completion of the commercial project named ‘Options world’ in Mumbai, Maharashtra, construction of the residential building in Amritsar, Punjab, construction work of Hydro Power Project in Arunachal Pradesh and construction and development of the residential project at Thane, Maharashtra.

Garuda Construction is currently engaged in the civil construction of six (6) residential projects, two (2) commercial projects, one (1) industrial project, and one (1) infrastructure with an aggregate order book of ₹ 1,408.27 crores, of which the completed projects order value is ₹546.87 crores.

For fiscal 2022–23, the company’s revenue from operations increased by 108.63% to Rs 160.69 crore from Rs 77.02 crore in fiscal 2021–22. Profit after tax increased 117.20% from Rs 18.78 crore in fiscal 2022 to Rs 40.79 crore in fiscal 2023. 

For the eight months ended November 30, 2023, revenue from operations stood at Rs 80.42 crore, and profit after tax stood at Rs 18.73 crore.

Corpwis Advisors Private Limited is the sole book-running lead manager for the IPO, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.

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