This story is from April 27, 2018
Centre to offload up to 25% stake in GRSE
KOLKATA: Garden Reach Shipbuilders & Engineers (GRSE) of Kolkata, the country’s oldest operational shipyard and the first one to be taken over by the ministry of defence (MoD), has started the process of partial disinvestment. According to sources in the department of investment and public asset management has decided to go for an initial public offering (IPO) of 20%-25% shares in the defence public sector undertaking that enjoys a Mini Ratna status.
"GRSE is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares and has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India (Sebi)," a source in the company said.
According to an official, the disinvestment will not only bring in funds for further modernization of the shipyard that has supplied the largest number of ships to the Indian Navy and Indian Coast Guard but also aid in developing a competitive spirit to bag orders during tendering processes where private companies are also involved. Apart from other warships, GRSE is now building three stealth frigates under the Navy’s ambitious Project 17A. Apart from ships and diesel engines, the company also builds engineering equipment for the defence forces such as Bailey Bridges.
“By mid-2018, we hope to clinch the order for four survey vessels and eight anti-submarine warfare (ASW) shallow water craft for the Navy. These orders are worth Rs 8,000 crore. Our order books are full. The company has also made a lot of improvement in maintaining schedules and research & development. We are also the only shipyard in the country to have built a ship that was delivered to the Mauritian Coast Guard,” the official added.
According to the Ministry of Finance, the authorized share capital of the company is Rs 125 crore and its paid-up share capital is Rs 123.84 crore, fully subscribed by the MoD. As on January 31, 2017, GRSE’s paid-up equity capital was Rs 123.84 crore with the Government of India holding 100% of the equity. The face value of each equity share is Rs 100. The profit after tax for the 2015-16 fiscal was Rs 160.72 crore and as on March 31, 2016, the company’s net worth was Rs 1,064.41 crore.
“The percentage of paid-up equity to be divested will be determined based on the post issue capital of the company calculated in consonance with the Securities Contracts (Regulation) Rules. A part of the public offering will be reserved for employees. Eligible employees and retail investors will be offered shares at a discount on the issue price,” the official added.
"GRSE is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares and has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India (Sebi)," a source in the company said.
According to an official, the disinvestment will not only bring in funds for further modernization of the shipyard that has supplied the largest number of ships to the Indian Navy and Indian Coast Guard but also aid in developing a competitive spirit to bag orders during tendering processes where private companies are also involved. Apart from other warships, GRSE is now building three stealth frigates under the Navy’s ambitious Project 17A. Apart from ships and diesel engines, the company also builds engineering equipment for the defence forces such as Bailey Bridges.
“By mid-2018, we hope to clinch the order for four survey vessels and eight anti-submarine warfare (ASW) shallow water craft for the Navy. These orders are worth Rs 8,000 crore. Our order books are full. The company has also made a lot of improvement in maintaining schedules and research & development. We are also the only shipyard in the country to have built a ship that was delivered to the Mauritian Coast Guard,” the official added.
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According to the Ministry of Finance, the authorized share capital of the company is Rs 125 crore and its paid-up share capital is Rs 123.84 crore, fully subscribed by the MoD. As on January 31, 2017, GRSE’s paid-up equity capital was Rs 123.84 crore with the Government of India holding 100% of the equity. The face value of each equity share is Rs 100. The profit after tax for the 2015-16 fiscal was Rs 160.72 crore and as on March 31, 2016, the company’s net worth was Rs 1,064.41 crore.
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