Garuda Construction & Engineering Limited has announced a significant move to bolster its financial position. The company's board of directors, in a meeting held on November 7, 2025, approved a series of strategic decisions aimed at raising capital and expanding its financial capabilities.

Key Decisions

1. Qualified Institutional Placement (QIP)

   • Approved raising up to ₹500.00 crores through a QIP
   • Equity shares with a face value of ₹5.00 each to be issued
   • Funds to be raised in one or more tranches

2. Increase in Authorized Share Capital

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

3. QIP Committee Formation

   • Constituted a dedicated committee to handle matters related to the proposed fundraising

4. Shareholder Approval

   • Plans to issue a notice for an Extraordinary General Meeting (EGM)
   • Seek shareholder approval for the fundraising and amendments to the Memorandum of Association

Detailed Overview

The board meeting, which commenced at 1:30 PM (IST) and concluded at 2:30 PM (IST) on November 7, 2025, resulted in several key decisions. Here's a breakdown of the proposed changes:

The increase in authorized share capital will be achieved by creating an additional 6 crore equity shares, each with a face value of ₹5.00.

QIP Details

The Qualified Institutional Placement (QIP) approved by the board 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 issue a notice for an Extraordinary General Meeting to seek shareholder approval for the proposed fundraising and amendments to the Memorandum of Association.
2. The newly formed 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.

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.