Garuda Construction And Engineering IPO

Focused business approach: Company usually concentrate specifically on undertaking construction of buildings, without engaging in any other activities such as land development or infrastructure development.

Proven track record: Company has established a track record of successfully executing a diverse mix of construction projects i.e., residential, hospitality and commercial projects. For instance, they constructed the Golden Chariot Vasai Hotel & Spa, also, renovation of Golden Chariot, the Boutique Hotel, Mumbai in the hospitality sector in the year 2015.

Strong project management capacity: Over the years, company has procured a fleet of construction equipment to ensure high quality and timely execution of projects. Company places great emphasis on executing each project in strict compliance with the contracts, while adhering to high standards of construction quality.

Increasing order book: As on the date of filling Red Herring Prospectus, the contract value of ongoing and upcoming projects amounted to a total of Rs. 1,40,827.44 lakhs with projects spread across the MMR, Arunachal Pradesh, Karnataka, Rajasthan and Punjab.

Client Concentration: Company's total revenue comes from our top 10 clients, mainly promoter-related entities and group companies. The loss of any of significant clients may have an adverse effect on business and prospects.

Group company projects: Garuda Construction and Engineering Limited is a construction company having predominantly group company and promoter associated construction business, they are venturing into third party contracts for further growth and increased business.

Cyclical business: The construction industry is cyclical with significant fluctuations in the market value of land and inventories as they can change significantly due to changing economic and market conditions.

Legal Proceedings: One of the promoter- Mr. Pravin Kumar Brijendra Kumar Agarwal is involved in a criminal proceeding initiated by Airport Police Station which is currently pending before the Hon’ble Metropolitan Magistrate at Andheri, Mumbai. Any such proceedings or any adverse action may affect the reputation of promoter and business.

Negative cash flows: For the period ended April 30, 2024 and year ended March 31, 2024 company has some billed revenue the payment for which are due and hence the cash flow from operations is negative. Cash flow from financing activities are negative due to repayment of interest and borrowings in the stub period ended April 30, 2024 and FY 2024, FY 2023 and FY 2022.