GRSE bullish on order book, files DRHP for proposed IPO

State-run Garden Reach Shipbuilders and Engineers Ltd (GRSE), which presently has Rs 21,000 crore in its order book and will also sign contracts with Indian Navy for an additional Rs 8000 crore projects, is expecting to double its value of production in the next 4-5 years, an official said on Saturday.

The ship maker has filed a draft red herring prospectus with the market regulator, Securities and Exchange Board of India (Sebi) in regards to its proposed initial public offer (IPO), company's Chairman and Managing Director Rear Admiral Vipin Kumar Saxena said here.

"As of now, we have an order book of Rs 21,000 crore and we are expecting to sign contracts with Indian Navy soon for Rs 8,000 crore projects for constructing of 12 vessels. With this, our order value will touch to Rs 29,000-30,000 crore.

"We are expecting to double our value of production which was over Rs 900 crore in the last year and in 2017-18, our value of production will be higher than that of previous year," he said.

According to him, two projects of Indian Navy were floated on a competitive bidding and the shipmaker have "competed against leading shipyards" to win them.

"The large survey vessel project would be of around Rs 2,500 crore and four ships are to be built. Another project of eight ASW (anti-submarine warfare) shallow water craft vessels was of about Rs 5,500 crore. We are in the process of signing one contract and hope these contracts would be signed soon," he said.

On the proposed IPO, Sexena said: "We have filed the DRHP to SEBI and are waiting for its approval."

The Central government was considering to sell upto 25 per cent its stake in the defence PSUs including GRSE.

After launching of the second fast patrol vessel of the series of five ships for the Indian Coast Guard, he said: "Two vessels have been launched and three more are required to be launched. Our intention is to complete the outfitting works of both the ships, which have been launched, in the next 8-10 months. We hope to deliver them in the financial year 2018-19."

The ship was launched with its proposed name "Annie Besant" and Eastern Command chief, Lt Gen. Abhay Krishna was present at the occasion.

Saxena said remaining three ships are also in the different stages of constructions.

According to him, the total cost of the project for building five fast petrol vessels is to tune of Rs 350 crore while each vessel costs around Rs 69 crore.

The first of the five ships being constructed for the outfit was launched in December 2017.

These fast patrol vessels would be used for surveillance operations at sea along with anti-poaching, anti-smuggling operations.

GRSE has already delivered overall 25 ships to the Indian Coast Guard.

--IANS

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