Garuda Construction, Patel Retail Get SEBI Approval To Float IPOs

Garuda Construction and Engineering Ltd. and Patel Retail Ltd. received approval from the Securities and Exchange Board of India on Monday to float their companies in the primary market via an initial public offering.

The two companies had submitted their draft offer documents on April 3 and June 4, respectively. 

Garuda Construction and Engineering's proposed public offering consists of a fresh issue of 183 lakh shares and an offer-for-sale of 95 lakh shares, according to the draft red herring prospectus.

The value of the IPO was not known.

The offer for sale consists of the sale of 95 lakh equity shares by promoter group PKH Ventures Ltd.

Corpwis Advisors Pvt. and Link Intime India Pvt. are the book-running lead managers for the issue.

The equity shares are proposed to be listed on both the Bombay Stock Exchange and the National Stock Exchange. Net proceeds from the issue will be used for funding working capital requirements, general corporate expenses, and unidentified inorganic acquisitions. 

Patel Retail’s public offering consists of 100.1 lakh equity shares, which includes an offer-for-sale of 10.02 lakh shares and a fresh issue of 90.18 lakh shares, according to the draft red herring prospectus. The offer also includes a reservation for a subscription for eligible employees.

The value of the IPO was not known.

Dhanji Raghavji Patel and Bechar Raghavji Patel, identified as the company's promoters at the time of filing the draft RHP, would offer 7.68 lakh and 2.34 lakh shares, respectively, under the offer-for-sale category. They joined the board on July 1 after a resolution was passed by relevant stakeholders.

Fedex Securities Pvt. and Bigshare Services Pvt. are the book-running lead managers for the issue. The equity shares are proposed to be listed on both the Bombay Stock Exchange and the National Stock Exchange.

Net proceeds from the issue amounting to Rs 60 crore will be used for repayment of borrowings, Rs 115 crore to fund the working capital requirements of the company, and the remaining for general corporate purposes.