Garuda Construction and Engineering files IPO draft papers to raise funds

Garuda Construction and Engineering Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering.

With this, the total number of draft offer documents filed by the companies has reached 10 in this year so far.

The proposed IPO is a combination of a fresh issue of 1.83 crore equity shares and an Offer For Sale of 95 lakh equity shares by promoter PKH Ventures Ltd, according to the Draft Red Herring Prospectus (DRHP) uploaded on Sebi's website on Wednesday.

Proceeds from the fresh issue will be used to support the working capital requirement of the Mumbai-based company and for general corporate purposes, including unidentified inorganic acquisition.

PKH Ventures currently holds 77.07 per cent stake in Garuda Construction and Engineering.

Garuda Construction and Engineering is involved in several projects for residential, commercial, residential-cum-commercial, hospitality, infrastructure and industrial projects.

According to the CareEdge Research Report, the construction sector is the country's second-largest economic segment after agriculture.

Corpwis Advisors Private Limited is the sole book-running lead manager to the maiden public issue.