Garden Reach Shipbuilders IPO overview – Garden Reach Shipbuilders is a shipbuilding company in India under the administrative control of the MoD and primarily adheres to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. In addition to ship and warship building capabilities, the company is engaged in engineering and engine production activities. As a part of its engineering division, it manufactures deck machinery items, pre-fabricated portable steel bridges and marine pumps. Its shipbuilding division contributes the maximum to revenue from operations and accounted for 81.23% and 75.10% of gross revenues from operations for the six months ended 30 September 2017 and 12 months ended 31 March 2017.
In last 5 decades, it has built and delivered more than 750 vessels ranging from small to large and advanced vessels to carry men and materials as well as for the surveillance of the coast line. The company has 3 separate facilities for shipbuilding, all of which are located in close vicinity of each other at Kolkata. It builds ships at the Main Works Unit and the Rajabagan Dockyard. The third facility, the FOJ Unit is primarily used for fitting out and repair of ships. The company acquired the Rajabagan Dockyard from Central Inland Water Transport Corporation Limited in the year 2006. The DEP Unit (Diesel Engine Plant) in Ranchi is engaged in the testing and overhauling of marine propulsion engines and assembly of semi-knocked down units of diesel engines.
Promoters of Garden Reach Shipbuilders – The President Of India
| Garden Reach Shipbuilders IPO details | |
| Subscription Dates | 24 September – 1 October 2018 (IPO closing date extended) |
| Price Band | INR114 – 118 per share (retail & employee discount – INR5 per share) |
| Fresh issue | Nil |
| Offer For Sale | 29,210,760 shares (INR333 – 344.69 crore) |
| Total IPO size | 29,210,760 shares (INR333 – 344.69 crore) |
| Minimum bid (lot size) | 120 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
| Garden Reach Shipbuilders’ financial performance (in INR crore) | ||||||
| FY2013* | FY2014* | FY2015 | FY2016 | FY2017 | FY2018 | |
| Total revenues | 1,599.7 | 1,693.2 | 1,629.4 | 1,856.1 | 1,146.3 | 1,525.7 |
| Total expenses | 1,405.3 | 1,511.9 | 1,539.3 | 1,604.5 | 1,126.2 | 1,398.0 |
| Profit after tax | 131.8 | 116.6 | 45.8 | 159.6 | 11.7 | 94.4 |
| Net margin (%) | 8.2 | 6.9 | 2.8 | 8.6 | 1.0 | 6.2 |
* Figures of FY2013 and FY2014 are based on Indian GAAP. Figures for subsequent years are based on Ind AS.
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Garden Reach Shipbuilders Contact Details
Garden Reach Shipbuilders Limited
43/46 Garden Reach Road
Kolkata – 700 024
Phone: +91 033 2469 8545
Fax: +91 033 2469 8150
Email: [email protected]
Website: www.grse.in
Registrar of Garden Reach Shipbuilders IPO
Alankit Assignments Limited
205-208, Anarkali Complex,
Jhandewalan Extension
New Delhi – 110 055
Phone: +91 11 4254 1234
Fax: +91 11 4154 3474
Email: [email protected]
Website: www.alankit.com
Valuation of Garden Reach Shipbuilders (FY2018)
Earnings Per Share (EPS): INR7.14
Price/Earnings (P/E) ratio: 16.10 – 16.52
Return on Net Worth (RONW): 8.54%
Net Asset Value (NAV): INR88.69 per share
Garden Reach Shipbuilders IPO Subscription Details
| Category | Shares offered | Subscription (no. of times) | |||||
| Day 1 | Day 2 | Day 3 | Day 4 | Day 5 | Day 6 | ||
| QIB | 14,319,000 | 0.00 | 0.00 | 1.22 | 1.22 | 1.81 | 1.81 |
| NII | 4,295,700 | 0.00 | 0.00 | 0.01 | 0.30 | 0.30 | 0.31 |
| Retail | 10,023,300 | 0.04 | 0.09 | 0.22 | 0.22 | 0.22 | 0.24 |
| Employees | 572,760 | 0.00 | 0.02 | 0.12 | 0.13 | 0.13 | 0.14 |
| Total | 29,210,760 | 0.01 | 0.03 | 0.67 | 0.72 | 1.01 | 1.02 |
Garden Reach Shipbuilders IPO Allotment Status
Garden Reach Shipbuilders IPO allotment status is now available on Alankit Assignments’ website. Click on this link to get allotment status.
Listing Performance of Garden Reach Shipbuilders
IPO Opening Date: 24 September 2018
IPO Closing Date: 1 October 2018 (IPO closing date extended)
Listing Date: 10 October 2018
Listing Price on NSE: INR102.5 per share (down 13.14% from IPO price)
Closing Price on NSE: INR103.3 per share (down 12.46% from IPO price)
IRCON IPO
Issue open 17-19 September 2018
Price Band 470-475
Lot Size 30 shares
Retail Discount – 10 RS
Defense IPOs have never made money. I’m convinced after looking at the performance of HAL, Bahrat dynamics. and Garden reach is not even in the same category as HAL!
Correct sir. By the way, HAL is no exceptional company. There have been so many delays in key projects. Just ask any insider and you will come to know that it has been reduced to just a PSU now. Now it is mere shadow of its glorious past.
I read in the review that it is expensive than Cochin shipyard although margins are less. Margins should be higher in defense, don’t know why Garden Reach has such poor margins.
Let me know listing date of garden reach ship builders