Workers build ships in a drydock (Photographer: Seokyong Lee/Bloomberg News)

Garden Reach IPO Fully Subscribed On Fifth Day

Garden Reach Shipbuilders and Engineers Ltd’s initial public offering was subscribed 1.01 times on its fifth day of bidding today.

Due to poor response from investors, the state-run shipbuilder had extended its Rs 345 crore IPO till Oct. 1, and tweaked the price band of its shares on sale to Rs 114-118 from Rs 115-118 earlier.

The portion allocated to qualified institutional buyers was subscribed 1.81 times the number of shares on offer, as per data shared by Axis Capital. The segment for non-institutional investors saw muted demand and was subscribed only 0.30 times while the retail segment was subscribed 0.23 times. Shares set aside for employees of the company were subscribed 0.13 times.

The company has three shipbuilding facilities in Kolkata, from which it generates over 90 percent of its revenue. The shipbuilder, as of July 31, had an orderbook of over Rs 20,000 crore that provides a revenue visibility of more than 15 years.

The government sought divestment of 25.5 percent of its stake in the shipbuilder through this bidding. The company’s bidding was managed by IDBI Capital Markets & Securities Ltd. and Yes Securities (India) Ltd.

Also read: State-Run Shipbuilder Garden Reach’s IPO Fails To Attract Investors