Garuda Construction and Engineering focuses on civil, industrial, infrastructure, and real estate construction. Founded in 2009, it started small and grew to secure significant government contracts. Their mission emphasizes quality and customer satisfaction, contributing to India’s growth. They operate through construction services, project management, engineering, and procurement. Let’s dive deep into the details of the 2024 Garuda Construction IPO details. 

Description

Discover mixed expert opinions on Garuda Construction IPO—valuable insights for savvy investors! 

Key Facts

• Analysts recommendations and market experts have mixed feelings about Garuda Construction’s IPO.
• Analysts at Arihant Capital recommend subscribing for listing gains due to a robust order book of ₹1,400 crore.
• However, Dilip Davda advises caution, highlighting the company’s inconsistent financial performance and concerns regarding high trade receivables. 

Analyzing Garuda Construction IPO 

Weighing Risks and Rewards:

• The reviews for Garuda Construction’s IPO vary. Arihant Capital Markets encourages subscriptions based on the impressive order book, which is nine times the FY24 revenue. However, some analysts express concerns about financial instability. Due to high trade receivables and fluctuating profits, potential investors should weigh these opinions carefully before deciding. 

Key Metrics Unveiled:

• The IPO runs from October 8-10, 2024, with shares priced between ₹92 and 95. It aims to raise ₹264.10 crores, with 1.83 crore fresh shares and an offer for sale of 95 lakh shares. Garuda Construction KPIs include vital dates and figures. The minimum investment requirement is ₹14,915. 

Financial Performance:

• In terms of financial performance, Garuda Construction faced a revenue decline of 4% and a profit drop of 11% from FY23 to FY24. Revenue stood at ₹154.47 crores for FY24, with a profit after tax of ₹36.44 crores. Their net worth has increased to ₹122.51 crores as of April 30, 2024, showcasing some perseverance despite challenges. 

Countdown to Opportunity:

• The IPO for Garuda Construction and Engineering will available publicly on October 8 and close on October 10, 2024. The Garuda Construction and Engineering IPO price range is set between ₹92 and ₹95 per share, targeting to raise ₹264.10 crores. Listing on BSE and NSE is expected on October 15, 2024, with shares credited to accounts on the same day. 

Objective of the IPO:

• Garuda Construction strategically focuses to use funds from the IPO to boost its growth. From October 8 to 10, 2024, Garuda Construction and Engineering plans to raise ₹264.10 crores through its IPO. The company will use this money to support current projects and cover general business costs.

Additionally, it wants to expand its wings to cover new opportunities for growth, such as potential acquisitions that will increase its overall future profits. 

Garuda Construction IPO Final Verdict!

Raising ₹264.10+ crores would help improve working capital and cover general expenses. This financial boost allows the company to take on more projects and expand its services. It also plans to explore strategic acquisitions to enhance its market presence. Furthermore, Listing on the stock exchange will make Garuda more visible and attractive to investors.

However, the Garuda Construction IPO risks include inconsistent financial performance and high trade receivables, which could affect potential investment stability.