Garden Reach lists at 13% discount to issue price.
State-owned ship building company Garden Reach Shipbuilders and Engineers (GRSEL) is eyeing an order book of Rs 28,000 crore to build massive defense warships for the Indian Navy and Indian Coast Guard, a top company official said.
Garden Reach is a shipbuilding company in India under the administrative control of the MoD and primarily adhere to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard.
“We have a strong order book of Rs 20,300 crore, comprising gross order value in the shipbuilding segment, engineering segment and the engine segment. The order also includes construction of three stealth missile frigates. Construction started ahead of schedule and first ship will be delivered by 2023.” GRSEL chairman and managing director Vipin Kumar Saxena told to Press Trust of India.
They also have three projects of Indian Navy and Coast Guard for delivering nine warships and some more orders are expected to take it to an order book of Rs 28,000 he said.
The company had already in the past constructed, built and delivered six warships to Indian Navy in less than one and half year time, Saxena said.
“We have commissioned a new facility, which will help us in reducing construction period of the war ships. Our capacity has now gone up to build 20 war ships of small, large and medium ships at our three different facilities. We have also modernised our facilities, which will help us in building war ships very efficiently,” Saxena added.
Meanwhile, the shares of Garden Reach Shipbuilders made a weak debut at the bourses Wednesday, plunging to close at Rs 105.20 as against issue price of Rs 118 per share.
The stock listed at Rs 104, falling 11.86 per cent from the issue price on BSE.
At NSE, shares of the company debuted at Rs 102.50, plunging 13.13 per cent as compared to the issue price.
The company’s Rs 345-crore initial public offer ran from September 24 to October 1 as the issue closure date was extended.
Also, the price band for the offer was revised from Rs 115-118 per share to Rs 114-118 per share.
The IPO was part of the government’s disinvestment programme, which involves dilution of 25 per cent stake to raise around Rs 345 crore.