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Garden Reach Shipbuilders sees weak debut

Capital Market 

Shares of & Engineers were trading at Rs 106.20 at 10:45 IST on BSE, a discount of 10% over the initial public offer price of Rs 118.

The stock debuted at Rs 104, a discount of 11.86% to the initial public offer (IPO) price. So far the stock hit a high of Rs 109 and low of Rs 102.40. On BSE, so far 2.17 lakh shares were traded on the counter.

The IPO of & Engineers received bids for 2.97 crore shares, as against 2.92 crore shares on offer, as per the (NSE) website data. The issue was subscribed 1.02 times.

The issue opened for subscription on 24 September 2018. The offer was scheduled to close on 26 September 2018. The company, however, extended the IPO by three days to 1 October 2018 and also revised the price band from Rs 115 to Rs 118 to Rs 114 to Rs 118 per

The qualified institutional buyers (QIBs) category was subscribed 1.81 times. The non institutional investors category was subscribed 0.31 times. The (RIIs) category was subscribed 0.24 times.

& Engineers, a mini ratna (Category-I) PSU from 2006, is a under the administrative control of and caters to the shipbuilding requirement of and Engineering and are also offered.

The IPO comprised sale of 2.92 crore shares by the government of The minimum bid lot was 120 equity shares and in multiples of 120 equity shares.

The objects of the issue were to carry out the divestment program of the apart from the benefits of listing the equity shares on the and the NSE and to enhance visibility and brand image and provide liquidity to the existing shareholders. The will hold 74.5% of the total paid-up equity capital post listing.

Garden Reach Shipbuilders & Engineers reported net profit of Rs 86.80 crore on net sales of Rs 1344.62 crore in the year ended March 2018.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 10 2018. 10:47 IST