Garden Reach Shipbuilders IPO disappointed

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Mumbai-Shares of Government Company Garden Reach Shipbuilders and Engineers strongly disappointed investors. The stock of this company was listed on the stock exchanges at less than the value of the issue (IPO) on Wednesday. On NSE, shares were listed on IPO price of 13.13 per cent with a discount of Rs 102.50 per share, while shares on BSE were down by 11.86 per cent to Rs 104 per share.

Explain that this company had an IPO worth 118 rupees per share. The company had targeted to raise Rs 345 crore from the IPO and the IPO was open from September 24 to September 26, which got only 67 percent subscription. After this, the company reduced the price and also increased the date of the IPO, despite it did not get very good response. Foreign investors did not show any interest in it.

Garden Reach Shipbuilders and Engineers makes the shipyard for the defense sector. The company has been modifying its infrastructure. The company gets a good order from the government. In 2013, the company has developed a new integrated shipbuilding facilitation. Apart from this, this new hull shop, module shop, drydock and building berth have been made for mega block integration. The company has inaugurated the Modern Pump Test Bed Faceliti in the Taratala unit on June 11, 2018. The company meets the requirements of the Indian Navy and Coast Guard. The company has an order book of Rs 20,313.6 crore, which is mostly from the Ministry of Defense.

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