IPO Opens: Garuda Construction & Shiv Texchem Ltd.

Garuda Construction and Engineering Ltd.

• Issue Opens on: October 8, 2024
• Issue Closes on: October 10, 2024
• Face Value: Rs 5 each
• Price Band: ₹ 92 – ₹ 95 Per Share
• Lot Size: 157 Equity Shares

Garuda Construction and Engineering Limited, a growing civil construction company provide end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects and additional services for infrastructure and also hospitality projects, has fixed the price band of ₹92/- to ₹95/- per Equity Share of face value ₹5/- each for its maiden initial public offer.

The IPO will open on Tuesday, October 08, 2024, for subscription and close on Thursday, October 10, 2024. Investors can bid for a minimum of 157 Equity Shares and in multiples of 157 Equity Shares thereafter. The net proceeds (gross proceeds less issue expenses) from its fresh issuance will be utilized to the extent of Rs 100 crore towards working capital requirement; and balance towards general corporate purposes including unidentified inorganic acquisitions.

Garuda Construction and Engineering is a growing civil construction company providing end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects and additional services for infrastructure and also hospitality projects.

Its end-to-end civil construction starts with detailed route survey, designing, detailed engineering, mobilization of resources, micro scheduling of construction activities, obtaining construction permissions and conducting soil/water testing, hiring of contractor / manpower, procurement of material, lab testing, carrying out construction activities as per approved plan and finally handing over the project are per the agreed terms. It is currently engaged in civil construction of six (6) residential projects, two (2) commercial projects, one (1) industrial project and one (1) infrastructure, with an order book of ₹ 1,408.27 crore.

Garuda Construction’s revenue from operations has grown from ₹ 77.02 crore in Fiscal 2022 to ₹ 154.18 crore in Fiscal 2024, at a Compound Annual Growth Rate of 26.03%, and profit after tax has increased from ₹ 18.78 crore in Fiscal 2022 to ₹ 36.43 crore in Fiscal 2024, at a CAGR of 24.72%. For the one month ended April 2024, revenue from operations stood at ₹ 11.87 crore and Profit after Tax stood at ₹ 3.50 crore.

Shiv Texchem Ltd.

• Issue Opens on: October 8, 2024
• Issue Closes on: October 10, 2024
• Face Value: Rs 10 each
• Price Band: ₹ 158 – ₹ 166 Per Share
• Lot Size: 800 Equity Shares

Mumbai based Shiv Texchem Limited is engaged in the business of importing and distribution of hydrocarbon-based chemicals, which is a critical raw material and inputs of applications in a wide spectrum of industries. For its IPO, the Company has fixed the price band of ₹158/- to ₹166/- per Equity Share of face value ₹10/- each for its Initial Public Offering. Retail Investors, HNIs and QIBs can bid for the IPO from Tuesday, October 08, 2024 to Thursday, October 10, 2024.

The net proceeds from the fresh issuance worth Rs 75.00 crore will be utilized towards long-term working capital requirements of the Company and the balance for general corporate purposes.

The availability of hydrocarbons is limited in India. However, India has been one of the largest consumers of chemicals & petrochemical products in the Asia Pacific region. The Company offers a diverse range of hydrocarbon-based chemicals viz. Acetyls, Alcohol, Aromatics, Nitriles, Monomers, Glycols Phenolic, Ketones and Isocyanates. These chemicals are critical raw materials and inputs of applications in a wide spectrum of industries. The Company assists and supports its customers for purchase planning, which includes pricing, product specifications, quantity, delivery schedule and management supply chain, which includes storage, handling and logistics support of the crucial chemical products

Ensuring sufficient, reliable and timely supply of 43 products, which are sourced from 65+ manufacturers and suppliers from multiple countries, the Company distributes and supplies them to over their 700 customers in India. The Company provides flexibility and convenience procurement options to its client. The Company has an established track record of around 19 years, and the Promoter and Managing Director, supported by an experienced team, have been instrumental in its growth.

In FY 24, the Company has achieved a revenue of Rs.1,53,490.41 lakhs as against Rs. 1,11,759.06 lakhs in the FY23, reporting a growth of 37.34%. During the same period, the Company reported net profit of Rs. 3,011.30 lakhs as compared to Rs. 1,602.72 lakhs in FY 23, achieving a remarkable growth of 88%. The Company reported ROCE and ROE of 26.99% and 19.08% for FY 24.