Government-owned Garden Reach Shipbuilders & Engineers’ Rs 3.4-billion initial public offering (IPO) has managed to scrape through. The 29.2-million share offering garnered bids for 29.8 million shares.
The IPO was supposed to close on Wednesday. However, lack of demand forced the government to extend the closing date and cut price band.
The price band for the issue was initially set at Rs 115 to Rs 118 per share. The lower end of the price band was later revised to Rs 114 per share. Retail investors applying in the IPO were offered a discount of Rs 5 per share. IDBI Bank and Yes Securities handled the IPO.
Through the IPO, the Centre diluted 25 per cent stake.
Garden Reach was the third IPO by a state-owned company this fiscal. In June, the Centre had raised Rs 4.6 billion through the IPO of Rites, a firm that operates in transport consultancy and engineering sector.
Last month, it raised Rs 4.7-billion through the IPO of construction firm Ircon International. Shares of Ircon had slipped below their IPO price during their trading debut on Friday.