INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of Garden Reach Shipbuilders Engineers made a tepid debut on NSE, as the scrip got listed at Rs Rs 102.50 on NSE, a 13.14
per cent discount to its issue price of Rs 118
On BSE, the scrip got listed at Rs 104, down 11.86 per cent.
The Kolkata-based mini-Ratna company makes warships for the Indian Navy and the
It comes under the Ministry of Defence.
At the issue price of Rs 118, the offer was valued at 15.6 times P/E on FY18 basis (post dilution)
compared with its closely listed peer Cochin Shipyard, which trades at 13.4 times.
The initial public offer (IPO), which opened for
subscription from September 24 to September 26, had to be extended to October 1, due to lack of investor interest
The price for the issue was revised downward to Rs 114-118 per share from from Rs 115-118
The Rs 345-crore issue was eventually subscribed 1.02 times, receiving bids for 2,97,58,920 shares against the total issue size of
Data showed that the company had an order book of Rs 20,314 crore till July, which was 15.1 times FY18 revenue.
Of this, the shipbuilding
orders accounted for 98.6 per cent of the order book, which consisted of 13 vessels
Revenues from warships delivered to the Indian Navy and Coastguard accounted for 90-93 per cent of the total revenues in the past three
fiscal years.
IDBI Capital Markets Securities and YES Securities (India) were the managers of the issue.
