Garden Reach IPO GMP, Review, Price, Allotment, Subscription
Garden Reach Shipbuilders and Engineers Limited is a Mini Ratna-Category I company engaged in shipbuilding company under the administrative control of the MoD. The Kolkata-based company that makes ships for the Indian Navy and Coast Guard.
The 133-year-old company that was nationalized in the 1960s has shipbuilding facilities in Kolkata and Ranchi and has supplied close to 700 vessels to carry men and material.
Objects of the Issue
- Carry out the disinvestment of Equity Shares by the Selling Shareholder.
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges.
- IDBI Capital Market Services Ltd
- Yes Securities (India) Ltd
Garden Reach IPO Review By CNBC and Zee business
Garden Reach IPO Review By Brokerage Houses
|SMC||Ranking ( 2/5 )||Click Here|
|Angel Broking||Neutral||Click Here|
|Hem Securities||Avoid||Click Here|
|GEPL Capital||Subscribe||Click Here|
|Choice India||Avoid||Click Here|
Considering the P/E valuation of Rs.7.58 multiple on the upper price band of Rs.118 EPS and P/E of FY2018 is 15.57 multiple and at a lower price band of Rs. 115, P/E multiple is 15.18. Looking at the P/B ratio on the upper price band of Rs.118. , book value and P/B of FY18 are Rs.94.55 and 1.25 multiple respectively and at a lower price band of Rs. 115 P/B multiple is 1.22. No change in pre and post issue EPS and Book Value as the company is not making fresh issue of capital.
On the valuations front, GRSE’s pre-issue P/E works out to 15.6x FY2018 annualized earnings (at the upper end of the issue price band), which is higher compared to its peer Cochin Shipyard (trading at 14x its FY2018 annualized earnings). Further, the company’s return ratios are also lower vs. other peers. Thus, we recommend NEUTRAL rating on the issue.
The co is bringing the issue at p/e multiple of approx. 14 on FY18 eps at price band of Rs 115-118/share. Although, company is one of India’s leading public sector shipyards catering to the defence sector but due to weak financial performance (Loss at operating level in FY17 & FY18),co is not looking attractive to deploy the funds in at present level. Hence, we recommend “Avoid” on issue.
Garden Reach Shipbuilders & Engineers Ltd.( GRSEL) stands to gain from operating leverage and also raise Stability from government infrastructure projects. At a P/E of 16.5x we believe that GRSEL is fairly valued. We assign a Subscribe rating to the IPO.
On valuation front, at higher price band, the company is demanding a P/E valuation of 15.6x (to its restated FY18 EPS of Rs. 7.6) as against the peer average of 13.6x. Considering the lumpy business cycle, highly labor intensive industry and poor financial
performance, we believe the demand valuation by the company is not justified. Also, since majority of the contracts are on fixed price basis – there would be pressure on profitability due to rise or volatility in the raw material prices. Thus we assign an
“AVOID” rating to the issue.
Garden Reach IPO Review By MyIpo
Garden Reach IPO Details
- IPO Open : 24-Sep-18
- IPO Close : 01-Oct-18
- IPO Size : 339.39 Cr
- IPO Lot Size : 120 (Minimum Lot)
- Price Band : 114-118 Per Share
- Retail Discount : 5 Per Share
- Minimum-Amount : 13560 (amount after discount)
- Retail Portion : 35% and (118.79 Crs at upper price band)
- Listing On : NSE - BSE
- Face Value : 10 Per Equity Share
- Equity : 29210760 Share
Garden Reach IPO Allotment & Listing
- Allotment Ratio: Adding Later
- Allotment : 08-Oct-18
- Refund : 08-Oct-18
- Credit To Demat A/C : 08-Oct-18
- Listing : 9-Oct-18
- Allotment Link : Link 1
Garden Reach IPO Valuation of Peers Group Companies
- Adding Later
Garden Reach IPO Anchor Investors
- Adding Later
Garden Reach IPO Subscription (no of times)
Garden Reach IPO Listing Details
Garden Reach IPO live quote: Click Here
Garden Reach Financial Performance
|Figure in Cr||FY2013*||FY2014*||FY2015||FY2016||FY2017||H1 FY2018|
|Profit After Tax||131.8||116.6||45.8||157.2||12.5||19.5|
Garden Reach IPO Registrar
Alankit Assignments Limited
205-208, Anarkali Complex,
New Delhi – 110 055
Phone: +91 11 4254 1234
Email: [email protected]
Garden Reach Address
Garden Reach Shipbuilders Limited
43/46 Garden Reach Road
Kolkata – 700 024
Phone: +91 033 2469 8545
Email: [email protected]
Garden Reach Promoters
- The President of India