Garden Reach Shipbuilders & Engineers LTD IPO: Should you go for it?

Grey Market Report
As on 03 Oct 2018
GMP INR NIL,
Kostak INR NIL,
Subject to : INR NIL

Total Subscription:
on Day 6 (on 01.10.2018 at 05:00 PM)
QIB : 1.21 Times
NII : 0.31 Times
RII : 0.24 Times
Total : 1.02 Times

IPO closing date expended to 01st OCT 2018.  Price band revised from Rs. 115-118 to Rs. 114-118

Company Detail
  • GARDEN REACH SHIP was started in 1934 under the Indian Companies Act, 1913.
  • GARDEN REACH SHIP is a shipbuilding company in India under the administrative control of the MoD.
  • The company is mainly providing  shipbuilding to Indian Navy and the Indian Coast Guard.
  • The company is also doing production of engine.
  • The company manufactures deck machinery items, pre-fabricated portable steel bridges and marine pumps.
  • The revenue from operations is mainly generated from shipbuilding division.
  • The company built India’s first indigenous warship–the INS Ajay, in the year 1961.
Competitive strengths
  • Modern Manufacturing Platform and Integrated Shipbuilding Facilities to deliver quality products
  • Strong Order Book of  ₹203,136.10 million as on July 31, 2018.
  • Securing contracts to build vessels for the Indian Navy and Coast Guard because of Make in India initiative
  • Diversified products and services to customers including portable bridges, deck machinery items, pumps and engines
  • Senior management team consists of technically qualified and experienced professionals
Objects of the Issue
  • Carry out the disinvestment of 20,046,600 Equity Shares by the Selling
    Shareholder
  • Achieve the benefits of listing the Equity Shares on the Stock Exchanges.
    The Company will not receive any proceeds from this Offer and all proceeds shall go to the Selling Shareholder.
Financial performance
Particulars For the year/period ended (in Rs. Millions)
31-Sept-17 31-Mar-17 31-Mar-16 31-Mar-15
Total Assets 46,999.32 45,650.04 44,514.94 40,009.76
Total Revenue 58,583.93 11,579.57 18,467.47 16,391.63
Profit After Tax 180.69 122.32 1620.47 517.28

The promoters :
The President of India acting through The Ministry of Defence,Government of India

IPO Timetable:
IPO Opens on : September 24,2018
IPO Closes on : September 26. 2018
Issue Type: Book Built Issue IPO
Offer for Sale 29210760 Equity Shares
Face Value: INR 10 per share
Price Band: Per Equity Share: INR 115-118
Rs 5 discount to RIIs
Minimum Order Quantity: 120 shares
Listing will at: BSE,NSE

Peer Comparison:
There is no comparable listed company in India having similar line of business

Lead Managers:
IDBI Capital ltd
Yes Securities ltd

Registrar to the IPO:
Alankit Assignments Limited

Registrered Office of the Company :
43/46 Garden Reach Road, Kolkata – 700 024,
West Bengal, India;
Contact Person: Sandeep Mahapatra,
Company Secretary and Compliance Officer

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