Anisha Mehra

North News

Chandigarh, October 8

Garuda Construction and Engineering Ltd. will launch its initial public offering (IPO) on October 8, 2024, aiming to raise Rs 264.1 crore. According to the news outlet NDTV Profit, the IPO comprises a fresh issue of Rs 173.85 crore and Rs 90.25 crore through an offer for sale. The price band is set at Rs 92-95 per share, with the listing expected on October 15.

The company, specializing in civil construction for residential, commercial, and infrastructure projects, holds an order book worth Rs 14,082.7 crore. Proceeds from the IPO will be used for working capital, corporate expenses, and potential acquisitions. The grey market premium stands at Rs 5, indicating a modest potential listing gain, the news outlet saud.

However, the company faces risks, including high revenue concentration from its top 10 clients, mostly linked to its promoters. Negative cash flows in recent years also present concerns for investors. Additionally, the promoter group, PKH Ventures Ltd., previously canceled an IPO due to weak demand, which may impact market sentiment.