Garden Reach Shipbuilders IPO – Review, Allotment Status, Subscription, Price, Date & more

Garden Reach Shipbuilders IPO is one of the latest PSU IPO drafted with SEBI. In this article, we will have a detailed review of Garden Reach Shipbuilders & Engineers IPO along with deep analysis of their IPO release date, IPO offer price, IPO subscription, IPO allotment, grey market price and other details.


Garden Reach Shipbuilders IPO Review & Ratings

IPO Ratings & Review
Criteria Ratings
Industry Sentiments 7.7/10
Industry Ranking 7.7/10
Company Background 7.6/10
Company Reputation 7.7/10
Competitive Edge 7.8/10
Financial Statements 7.9/10
Popularity Index 7.8/10
Promoters Reputation 7.6/10
Retail Appetite 7.8/10
Top Brokers Review 7.8/10
Overall Ratings 7.7/10
Star Ratings ★★★★☆

Summary of Garden Reach Shipbuilders IPO or GRSE IPO

Garden Reach Shipbuilders IPOGarden Reach Shipbuilders & Engineers Limited has filed its papers for IPO fundraising. The company has decided to go public by raising money from this IPO.  The stocks will be listed both on BSE and NSE. This is a part of the disinvestment initiative that has been taken by the Government of India.

It was listed in the budget of the FY2017-18 that, 80000 crores of money would be raised by the selling of shares of the government held companies. The number of equity shares is yet to be known. The amount to be raised is somewhere between 1000-2000 crores.

It is a fact to be noted that the company has been performing very well for the last few years and one can buy these stocks without a single thought.

The Company has hired 2 Lead managers i.e. IDBI Capital markets & securities limited & Yes Securities (India) Limited. The registrar to the offer is Alankit Assignments Limited.


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Garden Reach Shipbuilders IPO Date

The GRSE IPO release date is 24 Sept 2018 – 26 Sept 2018.

Garden Reach Shipbuilders IPO Subscription

Day / Date QIB NII RII Employee Total Subscription
Day 1: 24 Sept 2018 0.00x 0.00x 0.04x 0.01x 0.01x
Day 2: 25 Sept 2018 0.00x 0.00x 0.09x 0.02x 0.03x
Day 3: 26 Sept 2018 1.22x 0.01x 0.22x 0.12x 0.67x
Shares Offered or Net Issue 14,319,000 4,295,700 10,023,300 572,760 29,210,760

 


Garden Reach Shipbuilders IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Basis of Allotment Finalization Oct 1, 2018
Initiation of Refunds Oct 3, 2018
Credit of Shares to Demat Account Oct 3, 2018
IPO Shares Listing Date Oct 5, 2018

Garden Reach Shipbuilders IPO Price Band

The price band of the IPO is Rs 115 – Rs 118 Per Equity Share.

Garden Reach Shipbuilders IPO Issue Size

Garden Reach Shipbuilders & Engineers Limited IPO issue size is 29,210,760 Equity Shares of Rs 10, aggregating to up to Rs. 344.69 Crores. The minimum order quantity is 120 shares.


Garden Reach Shipbuilders & Engineers Limited – Company Overview

Garden Reach Shipbuilders & Engineers Limited was found in the year 1934. The company was originally held by private individuals. Later, the company was acquired by the government of India in the year 1960.

The company manufactured India’s first indigenous warship, INS Ajay. The company has decided to raise an IPO which is the maiden attempt from the company which is wholly held by the government.

Competitive Strengths of the Company

  • Modern Manufacturing Platform and Integrated Shipbuilding Facilities to deliver quality products
  • They provide End-to-End Solutions
  • Strong and Established Relationships with Indian Navy and Indian Coast Guard
  • Strong Order Book
  • Make in India Initiative
  • Business Diversification
  • Experienced Workforce

Garden Reach Shipbuilders & Engineers Limited – Financial Statement

Have a look at the Financial Stability of the company before you invest in it.

Financial Statement (in INR & Millions)

30-Sep-17 31-Mar-17 31-Mar-16 31-Mar-15 (Proforma)
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 1,620.47 517.28

EPS or Earning per Share

Earning per Equity Share in INR & Millions
  Mar’17 Mar’16 Mar’15 Mar’14 Mar’13
Basic 9.88 130.85 41.78 112.24 124.65
Diluted 9.88 130.85 41.78 112.24 124.65

The Ship building company has shown good results but they have faced a massive decline in 2018, this has lead to drop in ratings & we suggest that go for this IPO but only for long term. It may not open on a positive note.


Garden Reach Shipbuilders & Engineers Limited – Promoter

The promoter of the company is the President of India acting through the Ministry of Defence, Government of
India. The promoter holds most of the shares of the company. The President through the Defense Sector holds most of the shares of the company. In fact, 100% of the shares are held by the government.

Interest of Promoters

Interest of Promoters in the promotion of the company

The promoter of the company has promoted the company and they have shown interest in their shareholding of the company in the form of equity shares.

Interest of promoters in the property of the company

The promoter is not interested in the property of the company and they do not have any interest in acquiring the machinery of the company. They have not shown interest towards the property before the filing of the Draft Red Herring Prospectus with SEBI.

Interest of promoters in the intellectual property of the company

The promoter does not have any interest in the intellectual property of the company


Garden Reach Shipbuilders IPO Offer Details or Issue Details

Offer 29,210,760 Equity Shares of Rs 10 (aggregating up to Rs. 344.69 Crores
consisting of:
Offer for Sale 29,210,760 Equity Shares
Of which:
Employee Reservation Portion Up to 572,760 Equity Shares
Net Offer to public
consisting of:
A. QIB Portion 14,319,000 Equity Shares
Of which:
Mutual Fund Portion 715,950 Equity Shares
Balance for all QIBs including Mutual Funds 13,603,050 Equity Shares
B. Non-Institutional Portion Not less than 4,295,700 Equity Shares
C. Retail Portion Not less than 10,023,300 Equity Shares
Pre- and post-Offer Equity Shares
Equity Shares outstanding prior to this Offer 114,552,000 Equity Shares
Equity Shares outstanding after this Offer 114,552,000 Equity Shares

Garden Reach Shipbuilders IPO Issue Object

The objects of this Offer are:

  • To carry out the disinvestment of 20,046,600 Equity Shares by the Selling Shareholder; and
  • To achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Garden Reach Shipbuilders IPO Basis of Offer Price

Garden Reach Shipbuilders & Engineers Limited determines its own offer price. The shareholders of the company research the market for the demand for the products as the company has decided to sell off the equity shares.

The company consults the BRLMs’ and decides on the basis of the qualitative and the quantitative factors of the company. The face value of the equity shares released by the company is Rs 10 each.

The offer price is calculated [.] times the face value at the Floor Price. The Offer Price can also be calculated[.] times the face value of the Cap price of the Price band.

Qualitative Factors

The company believes that their qualitative strengths help them to compete in the highly competitive industry. These are the factors:

  • It is one of India’s largest and leading public-sector companies that manufacture various equipment for Indian navy and other areas of the defense
  • The company has excellent infrastructure and ultra-modern facilities
  • Garden Reach delivers great quality products.
  • The company provides a solution to the customers for any problem, be it the design, conceptualization
  • Excellent Project Management and System Integration
  • The company has good relations with the Navy and Coast Guard
  • The company has made good progress of indigenizing the products in terms of value under the Make in India initiative.
  • Excellent Operations and Cost Management
  • The company is led by a dedicated team of managers, the employees of the company are the biggest strength
  • Very profitable company and has always generated good revenue.

Quantitative Factors

The Quantitative factors are used to compute the offer price of the company

  • Basic and Diluted Earnings Per Share (“EPS”)
  • Price/Earning (“P/E”) ratio in relation to Price Band of Rs [●] to Rs [●] per Equity Share
  • Return on Net Worth (“RoNW”)
  • Minimum Return on Increased Net Worth after Offer needed to maintain Pre-Offer EPS
  • Net Asset Value (“NAV”) per Equity Share
  • Comparison with Listed Industry Peers
  • The Offer Price will be [●] times of the face value of the Equity Shares

Garden Reach Shipbuilders IPO Lead Managers

Lead Managers
IDBI Capital Markets & Securities Limited
YES Securities (India) Limited

Garden Reach Shipbuilders IPO Registrar to the Offer

Registrar of the Offer
Alankit Assignments Limited

Garden Reach Shipbuilders IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 7.5/10 7.9/10 7.5/10 7.9/10 7.9/10
Sharekhan 7.6/10 7.9/10 7.6/10 7.9/10 7.6/10
Kotak Securities 7.8/10 7.5/10 7.9/10 7.9/10 7.8/10
ICICI Direct 7.8/10 7.8/10 7.7/10 7.9/10 7.9/10
IIFL 7.5/10 7.6/10 7.8/10 7.0/10 7.9/10
Edelweiss 7.5/10 7.9/10 7.9/10 7.8/10 7.6/10
Zerodha 7.9/10 7.9/10 7.5/10 7.9/10 7.0/10
5Paisa 7.9/10 7.9/10 7.9/10 7.9/10 7.9/10
Karvy 7.9/10 7.8/10 7.6/10 7.9/10 7.9/10
Motilal Oswal 7.9/10 7.9/10 7.6/10 7.8/10 7.6/10

Garden Reach Shipbuilders IPO Grey Market Premium

The Garden Reach Shipbuilders & Engineers Limited IPO  Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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Garden Reach Shipbuilders IPO News

News 1 – State-run warship maker Garden Reach files for IPO

New 2 – Download Prospectus


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