Garuda Construction & Engineering Limited has taken a significant step towards implementing its fundraising plan. The company conducted an Extraordinary General Meeting (EGM) on December 1, 2025, to seek approval for several key financial decisions.

Key Points from the EGM

1. Qualified Institutional Placement (QIP)

   • Sought approval for raising up to ₹500.00 crores through QIP
   • Funds to be raised from qualified institutional buyers

2. Increase in Authorized Share Capital

   • Proposed increase from ₹50.00 crores to ₹80.00 crores
   • Creation of an additional 6 crore equity shares

3. Related Party Transactions

   • Approval sought for related party transactions

4. Voting Results

   • To be announced within two working days of the EGM

Background

The EGM follows the board meeting held on November 7, 2025, where these proposals were initially approved. The board had made several key decisions:

1. Approved raising up to ₹500.00 crores through a QIP
2. Approved an increase in authorized share capital from ₹50.00 crores to ₹80.00 crores
3. Formed a QIP Committee to handle matters related to the proposed fundraising

Detailed Overview

The proposed changes in the company's capital structure are as follows:

QIP Details

The Qualified Institutional Placement (QIP) under consideration has the following characteristics:

• Maximum Amount: Up to ₹500.00 crores
• Share Type: Equity shares with a face value of ₹5.00 each
• Pricing: To be determined in accordance with SEBI regulations and applicable laws
• Regulatory Compliance: The QIP will be conducted in accordance with Chapter VI of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and Section 42 of the Companies Act, 2013

Next Steps

1. The company will announce the voting results of the EGM within two working days.
2. If approved, the QIP Committee will oversee the details and execution of the fundraising process.
3. Necessary regulatory and statutory approvals will be sought as required.

This strategic move by Garuda Construction & Engineering Limited appears aimed at strengthening its capital base, potentially for expansion, debt reduction, or other corporate purposes. The outcome of the EGM will be crucial in determining the company's path forward with its fundraising plans.

Garuda Construction and Engineering Limited (GCEL) has announced a significant milestone in its project portfolio. The company has secured a substantial Engineering, Procurement, and Construction (EPC) contract valued at ₹1,416 crore from Sumer Corporation for the development of a luxury residential project in Mumbai.

Project Details

The project, named 'Powai Heights', is set to be a high-end residential complex located in Chandivali, Taluka Ghatkopar, Mumbai. According to the company's regulatory filing, the scope of work includes the civil construction of three high-end residential towers.

Contract Specifics

Here are the key details of the EPC contract:

Impact on Garuda Construction's Order Book

This new contract significantly bolsters Garuda Construction's order book. With the addition of this project, the company's total order book now stands at approximately ₹4,876.78 crore, showcasing a robust pipeline of projects.

Management Statement

Pravin Kumar Brijendra Kumar Agarwal, Managing Director and Chairman of Garuda Construction and Engineering Limited, signed the regulatory filing, underlining the importance of this contract to the company's growth strategy.

Market Implications

This large-scale project highlights the ongoing development in Mumbai's real estate sector and underscores the trust placed in Garuda Construction's capabilities for executing high-value, luxury residential projects. The contract's size and nature suggest a positive outlook for both the construction sector and the high-end real estate market in Mumbai.

As the project unfolds over the next five years, it will be interesting to observe its impact on Garuda Construction's financial performance and market position in the competitive EPC landscape.