Garuda Construction and Engineering Limited has successfully raised ₹75 crore from prominent anchor investors ahead of its upcoming Initial Public Offering (IPO), which opens on October 8. The IPO, priced in a range of ₹92-95 per share, aims to raise ₹264 crore at the upper end of the band. The funds will be used to support the company’s working capital requirements and corporate purposes, including potential acquisitions. Garuda, a major player in civil construction, has demonstrated robust financial growth, with a compound annual growth rate (CAGR) of 26% in revenue and 25% in profits between FY22 and FY24.

Garuda Construction Raises ₹75 Crore from Anchor Investors

Pre-IPO fundraise attracts anchor investors On Monday, Garuda Construction and Engineering Ltd. announced the successful raising of ₹75 crore from anchor investors, securing capital a day before its IPO opens for public subscription. This pre-IPO investment reflects the confidence of institutional investors in the company's growth trajectory and potential.
Notable institutional investors participate
Among the prominent anchor investors in this pre-IPO fundraise are 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. These funds were allocated a total of 78,95,138 equity shares at ₹95 each, solidifying their position in the company ahead of the public offering.

IPO Details: Mix of Fresh Issue and Offer for Sale

IPO size and pricing Garuda’s IPO is a combination of a fresh issue of 1.83 crore equity shares and an Offer for Sale (OFS) of 95 lakh shares by promoter PKH Ventures. The price band has been set between ₹92 and ₹95 per share, with the total IPO size expected to reach ₹264 crore at the upper price point. This IPO presents a significant opportunity for investors to engage with a growing entity in the Indian construction sector.
Public subscription dates and listing
The IPO is set to open for public subscription on October 8 and will close on October 10, giving investors a brief window to participate in the offering. The shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), providing liquidity and market exposure to the company’s shareholders.

Utilization of IPO Proceeds

Working capital and corporate expansion Proceeds from the IPO’s fresh issuance, amounting to ₹100 crore, will primarily be allocated towards meeting Garuda Construction's working capital needs. The remaining funds will be directed toward general corporate purposes, which may include unidentified inorganic acquisitions, reflecting the company’s ambition to grow through strategic investments in complementary areas.

Strong Order Book and Project Portfolio

Diversified project portfolio in civil construction Garuda Construction has established itself as a significant player in civil construction, currently managing six residential projects, two commercial projects, one industrial project, and one infrastructure project. With a robust order book worth ₹1,408.27 crore, the company is well-positioned to capitalize on India's burgeoning infrastructure development needs.
Focus on sustainable growth
The company’s focus on sustainable and diversified growth is evident from its broad portfolio, which spans residential, commercial, and industrial construction projects. This diversified portfolio mitigates risks and positions Garuda to benefit from opportunities across multiple sectors.

Impressive Financial Performance

Revenue and profit growth Garuda Construction has demonstrated impressive financial performance over the past two fiscal years. The company’s revenue from operations grew from ₹77.02 crore in FY22 to ₹154.18 crore in FY24, achieving a remarkable CAGR of 26%. Similarly, profit after tax surged from ₹18.78 crore to ₹36.43 crore during the same period, reflecting a CAGR of 25%. This financial momentum underscores Garuda's ability to scale its operations while maintaining profitability.

Advisors and IPO Logistics

Corpwis Advisors leads the IPO process Corpwis Advisors has been appointed as the sole book-running lead manager for Garuda’s IPO, overseeing the entire process from valuation to final execution. In addition, Link Intime India has been designated as the registrar of the issue, ensuring smooth operations during the public subscription and listing phases.