The initial public offer (IPO) of Garden Reach Shipbuilders & Engineers received bids for 1.97 crore shares today, 27 September 2018, as against 2.92 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 14:30 IST. The issue was subscribed 0.68 times.

The issue opened for subscription on 24 September 2018. The offer was scheduled to close Wednesday, 26 September 2018. The company, however, extended the IPO by three days to 1 October 2018 and also revised the price band from Rs 115 to Rs 118 to Rs 114 to Rs 118 per share.

Garden Reach Shipbuilders & Engineers, a mini ratna (Category-I) PSU from 2006, is a ship builder under the administrative control of Ministry of Defence and caters to the shipbuilding requirement of Indian Navy and Indian Coast Guard. Engineering and engine production services are also offered.

The IPO comprises sale of 2.92 crore shares by the government of India. At the lower price band of Rs 115 per share, the issue size works out to Rs 335.92 crore. At the higher price band of Rs 118, the issue size is Rs 344.68 crore. The minimum bid lot is 120 equity shares and in multiples of 120 equity shares.

The objects of the issue is to carry out the divestment program of the Central government apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance visibility and brand image and provide liquidity to the existing shareholders. The Union government will hold 74.5% of the total paid-up equity share capital post listing.

Garden Reach Shipbuilders & Engineers reported net profit of Rs 86.80 crore on net sales of Rs 1344.62 crore in the year ended March 2018.