Shipping containers sit aboard a cargo vessel. (Photographer: Krisztian Bocsi/Bloomberg)

Garden Reach Shipbuilders’ IPO Subscribed 0.03 Times On Second Day

Garden Reach Shipbuilders & Engineers Ltd.’s Rs 345-crore initial public offering was subscribed 0.03 times on the second day of its bidding today.

The portion allocated for retail investors was subscribed 0.09 times while shares earmarked for employees were subscribed 0.02 times, according to National Stock Exchange data.

A total of bids 9.49 lakh bids were received for the 2.9 crore equity shares on offer. The government plans to raise nearly Rs 345 crore by selling 25.5 percent in shipbuilder.

The company has three shipbuilding facilities in Kolkata, from which it generates over 90 percent of its revenue. Garden Reach’s revenue and net profit declined at an annualised rate of 2.5 percent and 8 percent respectively, through fiscal years 2013 and 2018. The revenue declined mainly due to a slowdown in order execution.

The company’s bidding was managed by IDBI Capital Markets & Securities Ltd and YES Securities (India) Ltd.