Garuda Construction and Engineering
Book Building issueMainboardNSE₹264 Cr issue
+8.63%
Listing gain over issue price
Issue size
₹264 Cr
1 lot at cut-off
₹14,915
Lot size
157shares
Open
08 Oct 2024
Close
10 Oct 2024
Allotment
11 Oct 2024
Listing
15 Oct 2024
Listing performance
Issue price
₹95
Listed at
₹103.20
Listing-day close
₹106.83
Latest price
₹139.39
Close on 23 Oct 2026
Listing gain
+8.63%
Return since issue
+46.73%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Oct 2024 – 10 Oct 2024
- Listing date
- 15 Oct 2024
- Face value
- ₹5 per share
- Issue price
- ₹95 per share
- Lot size
- 157 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹264 Cr
- Market cap at offer price
- ₹884 Cr
- Promoter holding
- 96.82% → 67.56% pre-issue → post-issue
- ISIN
- INE0JVO01026
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Corpwis Advisors Pvt.Ltd.
- Registered office
- 201, A Wing, Fortune 2000 C-3 Block, Bandra Kurla Complex, Bandra (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 83,40,000 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 157 shares per lot, in multiples, at ₹95
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 157 | ₹14,915 |
| Retail (max) | 13 | 2,041 | ₹1,93,895 |
| S-HNI (min) | 14 | 2,198 | ₹2,08,810 |
| S-HNI (max) | 67 | 10,519 | ₹9,99,305 |
| B-HNI (min) | 68 | 10,676 | ₹10,14,220 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
83,40,000
Anchor portion
₹79.23 Cr
at ₹95 per share
Valuation and performance
Valuation at offer price
₹95 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.87 | 4.52 |
| P/E (×) | 19.51 | 21.02 |
| Price to book (×) | 5.97 | — |
| Market cap | — | ₹884 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 30.62%
- ROCE
- 46.69%
- PAT margin
- 23.63%
- NAV per share
- ₹15.92
- Price to book
- 5.97
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Garuda Construction and Engineering
Garuda Construction and Engineering Limited is a civil construction and engineering company incorporated in 2010 and converted to public limited company in October 2023. Based in Mumbai, the company provides comprehensive construction services including civil construction, operations and maintenance (O&M) services, and mechanical, electrical and plumbing (MEP) services for residential, commercial, residential-cum-commercial, infrastructure and industrial projects. The company operates primarily as an EPC (Engineering, Procurement and Construction) contractor and subcontractor. For the financial year ended March 31, 2024, the company generated revenue from operations of ₹15,417.83 lakhs with an EBITDA of ₹5,008.56 lakhs. The company's order book as of the date of filing comprises estimated revenues from unexecuted portions of existing contracts valued at ₹1,40,827.44 lakhs.
Company Analysis
from RHPGaruda Construction and Engineering is a civil construction and engineering company providing end-to-end construction services for residential, commercial, infrastructure and industrial projects in India.
Garuda Construction and Engineering Limited is a civil construction and engineering company incorporated in 2010 and converted to public limited company in October 2023. Based in Mumbai, the company provides comprehensive construction services including civil construction, operations and maintenance (O&M) services, and mechanical, electrical and plumbing (MEP) services for residential, commercial, residential-cum-commercial, infrastructure and industrial projects. The company operates primarily as an EPC (Engineering, Procurement and Construction) contractor and subcontractor. For the financial year ended March 31, 2024, the company generated revenue from operations of ₹15,417.83 lakhs with an EBITDA of ₹5,008.56 lakhs. The company's order book as of the date of filing comprises estimated revenues from unexecuted portions of existing contracts valued at ₹1,40,827.44 lakhs.
civil constructioninfrastructure constructionresidential constructioncommercial constructionindustrial constructionreal estate development
Objects of the Issue
- Funding the working capital requirement of the Company ₹10,000.00 lakhs p.28
- General corporate purposes including unidentified inorganic acquisition p.28
- Objects of the Offer related to Fresh Issue proceeds p.79
- Working Capital Requirements ₹10,000.00 lakhs p.113
- General Corporate Purposes and unidentified inorganic acquisitions [●] lakhs (not to exceed 35% of Gross Proceeds, with sub-limits of 25% for general corporate purposes and 25% for unidentified inorganic acquisitions) p.118
Issue Structure
- Total Issue
- Up to ₹[●] lakh (Up to 2,78,00,000 Equity Shares)
- Fresh Issue
- Up to ₹[●] lakh (Up to 1,83,00,000 Equity Shares)
- Offer for Sale
- Up to ₹[●] lakh (Up to 95,00,000 Equity Shares by PKH Ventures Limited)
- Price Band
- ₹[●] per Equity Share (Floor Price) to ₹[●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹5 each
Business Model
The company earns revenue primarily through EPC contracts where it provides lock-and-key construction services, MEP and finishing works for developers and contractors. Revenue from EPC contracts represented 90.46% of total revenue in FY2024. The company also provides operations and maintenance services for completed projects. The company operates as both a main contractor/developer and as a subcontractor to primary contractors. Revenue is recognized upon completion of construction milestones and as per the terms of contracts with clients.
Business Segments
Engineering, Procurement and Construction for residential, commercial, infrastructure and industrial projects. Includes lock-and-key construction services, MEP and finishing works.
Operations and maintenance services for completed construction projects.
Provides construction services including engineering, procurement and construction for residential buildings, commercial, commercial cum residential, industrial, hospitality and infrastructural projects
Civil construction of residential buildings and residential cum commercial projects
Civil construction of commercial and office buildings
Civil construction of infrastructure projects including hydro projects and other infrastructure works
EPC contracts for industrial and agro-processing projects
Mechanical, Electrical and Plumbing services, finishing works, and operations & maintenance services
Construction of residential, residential cum commercial, industrial, infrastructural, and commercial buildings including MEP services and finishing works
Development of residential and commercial projects; currently has two projects for construction and development in order book
Civil construction services for residential, commercial, residential cum commercial, infrastructure and industrial projects
Operations and maintenance services for buildings
Construction contracts and maintenance of buildings
SWOT Analysis
Strengths
- • Strong revenue concentration from established order book(p.52)
- • Experienced in end-to-end civil construction with multiple service offerings(p.28)
- • Established relationships with major group and promoter entities(p.39)
- • Strong profitability margins demonstrated historically(p.30)
- • Received in-principle approval from NSE and BSE for listing(p.2)
- • Established EPC contractor with diversified project portfolio(p.55)
- • Significant revenue growth trajectory(p.61)
- • No material penalty or liquidated damages imposed in past three years(p.54)
- • No liability claims for defective work in past three years(p.56)
- • Established track record of diverse project execution(p.171)
- • Strong project management and execution capabilities(p.171)
- • Experienced promoter with two decades in construction(p.169)
- • Strong financial performance with superior margins(p.169)
- • Virtually debt-free balance sheet(p.169)
- • Growing order book indicating visible growth momentum(p.171)
- • Strong CAGR in revenue and profit growth(p.169)
- • Focused, specialized business model in building construction(p.171)
- • Experienced promoter with 20+ years in construction, hospitality and management services(p.172)
- • Strong track record completing marquee projects including Delhi Police Headquarters(p.183)
- • Asset-light model reduces capital requirements and improves margins(p.173)
- • Geographical diversification across 7 states reduces concentration risk(p.173)
- • Solid order book of ₹1,40,827.44 lakhs providing revenue visibility(p.177)
- • ISO accreditations demonstrating quality, safety and environmental standards(p.191)
- • Lock-and-key service model enables higher margins through integrated scope(p.172)
- • Established track record in large-scale infrastructure projects including marquee works(p.313)
- • Diversified portfolio across multiple sectors and customer types(p.313)
- • Strong profitability with consistent EBITDA margins above 32%(p.314)
- • Significant revenue growth from operations over three-year period(p.313)
- • Minimal debt burden with net debt position moving to negative(p.314)
- • Comprehensive service offering across project lifecycle(p.313)
Weaknesses
- • Extreme revenue concentration: 100% from top 10 customers, mostly related parties(p.38)
- • Negative operating cash flow in recent periods(p.40)
- • Limited experience with unrelated third-party entities(p.38)
- • Pending criminal proceedings against promoter(p.40)
- • No proof of stamp duty payment on share issuance(p.43)
- • Significant tax dues pending with authorities(p.46)
- • Substantial material litigation involving company, promoters and directors(p.48)
- • Project delays and lack of commencement certificates(p.43)
- • High dependence on subcontractor labor availability and compliance risks(p.53)
- • Significant reliance on sub-contracting arrangements representing over 50% of revenue(p.53)
- • Dependence on key raw materials and supplier availability(p.54)
- • Misplacement or loss of project documents impacting legal compliance(p.57)
- • Promoter involved in pending legal proceedings(p.54)
- • Non-availability of formal business advance agreements creating recovery risks(p.60)
- • No proof of stamp duty payment on dematerialized securities(p.60)
- • Trademark registration not yet granted, creating infringement risk(p.61)
- • High concentration of customer base and order book risk(p.57)
- • Heavy dependence on promoter and related party contracts(p.169)
- • Limited track record as independent contractor outside group(p.164)
- • Unproven capability managing significantly larger projects(p.156)
- • New entrant to developer role with no prior acquisitions(p.119)
- • Asset-light model creates dependence on third-party equipment vendors(p.171)
- • High customer concentration with top 10 clients representing 96.97% of FY2024 revenue(p.190)
- • Dependency on promoter group entities and related party contracts for majority of business(p.175)
- • Limited experience in development business outside group entities(p.172)
- • Small permanent workforce of only 65 employees creates execution constraints(p.191)
- • Reliance on third-party subcontractors for labour creates execution risk(p.192)
- • High concentration of revenue with related party customers(p.296)
- • Significant related-party advances without formal repayment terms(p.280)
- • Aged receivables outstanding for extended periods indicating collection challenges(p.281)
- • Lack of audit trail controls in accounting software(p.251)
- • Income tax dispute related to prior years(p.255)
- • Project execution risks including time and cost overruns(p.315)
- • Dependence on sub-contractor performance(p.315)
- • Dependence on joint venture partner performance(p.315)
- • Outstanding material litigations involving promoters(p.315)
- • Decline in profitability and cash generation(p.318)
- • Decline in revenue from operations(p.317)
Opportunities
- • Expansion into third-party contracts beyond promoter group(p.39)
- • Growing Indian construction sector projected for strong expansion(p.28)
- • Increased infrastructure demand and government initiatives(p.28)
- • Geographic expansion across India beyond MMR(p.41)
- • Diversification into real estate development(p.26)
- • Planned use of IPO proceeds for working capital and inorganic growth(p.29)
- • Growing demand in Indian construction sector post-COVID recovery(p.67)
- • Expansion of EPC services into MEP, finishing and interior services(p.54)
- • Scale-up of project execution capabilities(p.57)
- • Expansion into developer role for larger margins(p.164)
- • Acquisition of small construction companies facing compliance challenges(p.119)
- • Planned acquisition of crusher plant for cost reduction(p.120)
- • Strong government infrastructure spending supporting demand(p.150)
- • Expanding to unrelated third-party contracts(p.164)
- • Geographic expansion beyond MMR into multiple states(p.171)
- • Long-term favorable construction sector growth trajectory(p.150)
- • Expand into development segment leveraging construction expertise(p.172)
- • Increase lock-and-key projects with higher profit margins(p.173)
- • Expand into new sectors including institutional, government and industrial projects(p.174)
- • Grow O&M services business following completion of marquee projects(p.183)
- • Expand clientele by winning contracts directly from non-related third parties(p.184)
- • Expansion from in-house construction into third-party contracts and residential development(p.313)
- • Growth in Mumbai Metropolitan Region residential construction market(p.313)
- • Increasing project scale and execution capabilities(p.313)
- • Procurement of larger contracts beyond group entities(p.313)
- • Significant revenue growth from FY22 to FY23(p.319)
- • Strong profit expansion demonstrated in recent years(p.319)
Threats
- • Construction industry cyclicality and economic sensitivity(p.41)
- • Heavy dependence on MMR real estate market performance(p.41)
- • Intense competition from larger, better-resourced competitors(p.44)
- • Raw material price volatility and supply disruptions(p.49)
- • Risk of project cancellation and payment default(p.52)
- • Regulatory and statutory approval delays(p.42)
- • Contractual risks inherent in EPC agreements(p.42)
- • Previous promoter IPO withdrawal creates investor concern(p.40)
- • Highly competitive construction industry with pricing pressure(p.57)
- • Raw material price volatility(p.57)
- • Delays in regulatory clearances and land acquisition(p.57)
- • Monsoon and seasonal weather disruptions(p.58)
- • Counterparty credit risk and payment delays from clients(p.58)
- • Regulatory and compliance costs increasing due to stringent environmental and labor laws(p.69)
- • Labor shortage and wage inflation(p.53)
- • Economic slowdown reducing construction demand(p.68)
- • Inflation impact on costs without corresponding price increases(p.73)
- • Geopolitical tensions and trade disruptions(p.73)
- • Volatility in raw material prices impacting margins(p.154)
- • Delays in government clearances and land acquisition(p.155)
- • Highly competitive and fragmented EPC market(p.155)
- • Global competition from large international firms(p.155)
- • Regulatory changes impacting real estate market(p.156)
- • High inventory and low saleability in real estate market(p.156)
- • Cyclicality and potential moderation in construction activity(p.150)
- • Significant competition from large national and regional construction companies(p.191)
- • EPC contract risks including time overruns, cost escalations and defect liability(p.184)
- • Geographical project concentration with 9 of 12 ongoing projects in MMR region(p.174)
- • Reliance on client-procured raw materials creates quality and cost control risk(p.188)
- • Exposure to regulatory and environmental compliance requirements across multiple states(p.193)
- • Project execution risks in diverse geographies complicate equipment mobilisation(p.173)
- • Dependence on related party group companies for project sourcing(p.296)
- • Regulatory changes in construction standards and compliance requirements(p.242)
- • Liquidity constraints and working capital requirements in construction projects(p.244)
- • Material uncertainty related to collections from receivables(p.256)
- • Exposure to interest rate risk on borrowings(p.292)
- • Changes in laws and regulations affecting business(p.315)
- • Economic and political uncertainty in India(p.315)
- • Technological obsolescence risk(p.315)
- • Monsoon-related operational disruptions(p.324)
- • Negative operating cash flow in recent periods(p.320)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Pravinkumar Brijendra Kumar Agarwal | Individual Promoter | Negligible (60 equity shares) | — |
| PKH Ventures Limited | Corporate Promoter / Promoter Selling Shareholder | 77.07% | — |
| Makindian Township Private Limited | Corporate Promoter | 19.75% | — |
| PKH Ventures Limited | Promoter | 77.07% | — |
| Makindian Township Private Limited | Promoter Group | 19.75% | — |
| Pravinkumar Brijendra Kumar Agarwal | Promoter | Negligible | — |
| PKH Ventures Limited | Promoter Selling Shareholder | 25.42% (fully diluted pre-Offer paid-up capital) | [●]% (fully diluted post-Offer paid-up capital) |
| Pravinkumar Brijendra Kumar Agarwal | Promoter | — | — |
| PKH Ventures Limited | Corporate Promoter | — | — |
| Makindian Township Private Limited | Corporate Promoter | — | — |
| PKH Ventures Limited (Formerly known as P.K.Hospitality Services Private Limited) | Holding Company | 77.07% | — |
| Makindian Township Private Limited | Promoter Group Entity | 19.75% | — |
| PKH Ventures Limited | Promoter Selling Shareholder | — | — |
| PKH Ventures Limited | Selling Shareholder | — | — |
Leadership
Pravin Kumar Brijendra Kumar Agarwal · Chairperson and Managing Director
Rohit Ramanand Pareek · Chief Financial Officer
Aaushi Batheja · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Garuda Construction and Engineering IPO FAQs
What is the lot size of Garuda Construction and Engineering IPO?
The minimum lot size of Garuda Construction and Engineering IPO is 157 shares. One lot costs ₹14,915 at the cut-off price.
When does Garuda Construction and Engineering IPO open and close?
Garuda Construction and Engineering IPO opened for subscription on 08 Oct 2024 and closed on 10 Oct 2024.
What is the listing date of Garuda Construction and Engineering IPO?
Garuda Construction and Engineering IPO listed on 15 Oct 2024.