Under the Indian Companies’ act 1913, the shipbuilding company of India was incorporated in the year 1934. In 1960, the company was acquired by Govt of India from Macneill & Barry Limited. The company primarily adhere to the shipbuilding requirements of the Indian Navy and Coastguard. Besides this, the company is engaged in the business of engineering and engine production activities. This article will cover every detail of the company including qualitative and quantitative data. At the end of the content, we are going to provide Garden Reach Shipbuilders and Engineers IPO Review. So, let’s begin with the basics fundamentals, the issue details of the company.
Garden Reach Shipbuilders and Engineers IPO Review Issue Details:
- IPO Opens on – September 24, 2018.
- IPO Closes on – Oct 1, 2018.
- Issue Price – Rs. 115-Rs. 118 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Face Value – Rs.10 per Equity Share.
- Min Order Quantity – 120 Shares.
- Market Lot – 120 Shares.
- Issue Size – 29,210,760 Equity Shares of Rs. 10 aggregating up to Rs. 344.69 Cr.
- Listing Exchange At – BSE, NSE.
- Draft Prospectus – Click Here.
Purpose of Issuing Shares
- One of the primary objectives of issuing shares is to cope up with expenses. The expenses include underwriting, management fees, printing-distribution expenses, legal expenses etc.
- To get the benefits of listing shares under stock exchanges.
- In order to enhance the corporate image, the brand name is also important factors for issuing shares.
About the Company
For analyzing a company’s strength and weakness, one must go through the company’s background. This section will provide you with all the required details of the company.
- The company’s engineering division is engaged in the manufacturing of deck machinery items, pre-fabricated portable steel bridges, also marine pumps. From the operation, the company is able to contribute a significant majority of revenue.
- From the shipbuilding division, it has derived 94..14%, 90.13%, 92.19%, and 94.76%.
- Garden Reach has established its capabilities in the segments of in-house-design as well as shipbuilding.
- It has provided a significant contribution to the indigenous warship contribution program of India.
- From small to large ships, frigates, anti-submarine warfare corvettes, landing ship tanks missile corvettes, fast patrol vessels, hover crafts etc are built and delivered by the company since last five decades.
- More than 750 men and materials carried vessels have been built and supplied by Garden Reach.
- Their shipbuilding process takes place at the Main Works Unit and the Rajabagan Dockyard. In the year 2006, the company had acquired the Rajabagan Dockyard from Central Inland Water Transport Corporation.
- Their manufacturing unit works on the portable steel bridges, deck machinery, marine pumps.
- The company is India’s first shipyard to integrate carbon composite superstructure.
- The previous fiscal year 2018 revenue from operations was 13,465.16 million which is much higher than the previous fiscal year.
- Anti Submarine Warfare Corvette
- Missile Corvette
- Landing Ship Trunk
- Landing Craft Utility
- Survey Vessel
- Fleet Replenishment Tanker
- Offshore Patrol Vessel
- Inshore Patrol Vessel
- Fast Attack Craft
- Hover Craft
- Fast Interceptor Boat
- Portable Bridges
- Deck Machinery Items
List of Competitive Strength
- Innovative as well as an upgraded manufacturing platform and broad shipbuilding facilities come under the competitive strength of the company. These facilities help the company to deliver quality products.
- They believe in the end-to-end solution strategy.
- The company’s most significant strength is they establish a strong relationship with Indian Navy and Indian Coast Guard.
- Their Strong Order book, initiatives are also important factors here.
- Any business whether small or large must cope up with time. The strategy is to don’t be a static one, try to diversify the business. Garden Reach follows the diversifying strategy as a whole.
- Their experienced and efficient workforce is the biggest strength of the company.
Strategies of Garden Reach
- Their strategies include maintaining a strong and established relationship with Indian Navy and Coast Guard.
- Apart from the previous strategy, there are repairing strategy of Indian Navy and Coast Guard Vessels.
- Upgrade the technological capabilities and facilities is also one common strategy.
- Enhancing and Aligning the research and development capabilities.
- Pursuing newly available market as well as operational opportunities.
Registered Office of GRSE
43/46, Garden Reach Road Location: Kolkata – 700 024, West Bengal, India
Tel No: +91-33- 24698100-8113
Fax No: +91-33-24698150
Email Id: [email protected]
Website link: www.grse.in
Corporate Id No: U35111WB1934GOI007891
Registration No: 007891
Garden Reach Company Management
- Chairman & Managing Director: RAdm Vipin Kumar Saxena
- Director (Finance) & CFO: Sarvjit Singh Dogra
- Director (Personnel): Asit Kumar Nanda
- Director (Shipbuilding): Cmde Sanjeev Nayyar
- Government Nominee Director: Ashwani Kumar Mahajan
- Part-Time Non-Official (Independent) Director: Bharat Bhushan
- Part-Time Non-Official (Independent) Director: Kanwaljit Deol
- Part-Time Non-Official (Independent) Director: Dr. Ajai Bhandari
- Part-Time Non-Official (Independent) Director: RAdm Inder Paul Singh Bali.
Company Financials Statement:
Garden Reach Shipbuilders and Engineers IPO Review:
Here, get into the main discussion of Garden Reach Shipbuilders and Engineers IPO Review. Let’s go through the annual financial statement of the company. The attached snapshot is taken from the profit-loss statement of the company. Profit of the year states that the company reached its highest limit in the fiscal year 2016. After that, it had a short downfall in the profit. In the last fiscal year 2018, the company is able to recover the profit level to some extent. Last year profit is 868.06 (Profit After Tax). The company prospectus also depicts the fundamental ratio of the company. Basics and Diluted Earnings Per Share of the company stand at 7.14 in 2018. Based on the annual EPS, its P/E or price to earnings ratio is at 16.11. As per the fiscal year 2018, the company’s RoNW and NAV/Share are at 8.54 and 88.69 respectively.
Investors can check the bid details of the IPO for getting more surety regarding the IPO. They can check it from the NSE site on the last day of application. Grey Market Premium is also an important analyzing factor in IPO. However, based on the analysis, Garden Reach Shipbuilders and Engineers IPO Review carry a NEUTRAL overview.
Recently closing date of the IPO has been changed to 1st Oct. The post is being updated.
Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets. An experienced stock market content writer Ankita is also trading on her own account. Ankita is also preparing for the NISM Research Analyst Series XV examination seriously.
Categories: IPO Review