While the IPO market is still dormant, Garden Reach Shipbuilders & Engineers has received SEBI’s approval to go ahead with its initial public offering.
According to the latest update, the warship maker has filed a draft red herring prospectus (DRHP) with market regulator on March 26 and had obtained its observations on May 22.
Garden Reach Shipbuilders, abbreviated at GRSE, it is one of the leading shipyards in the country situated in Kolkata, West Bengal. While it builds and repairs commercial and naval vessels, it has recently started building export ships in a mission to expand its business.
As per the draft filed, Garden Reach Shipbuilders IPO will account for selling of 20,046,600 equity share which corresponds to 17.5 percent stake in the company.
The public issue is being made as the government wants to tap the real value of such PSU’s and bring in greater accountability. The IPO will be managed by IDBI Capital Markets and Securities and Yes Securities (India) while the equity shares of the company will be listed on BSE and NSE.
Earlier this month, Rail Vikas Nigam had received the go-ahead for IPO from SEBI. On the other hand, two other firms Indian Renewable Energy Development Agency and RITES successfully secured the markets approval in February.
Coming to the government perspective, it has parred its stake in Hindustan Aeronautics, Bharat Dynamics and Mishra Dhatu Nigam. The move was a part of the government’s disinvestment drive aimed at raising 800 billion from stake sale in state-run companies in FY 19.