Garden Reach Shipbuilders Ltd

Garden Reach Shipbuilders

About the Company:

Garden Reach Shipbuilders is a shipbuilding company in India under the administrative control of the MoD and primarily adhere to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard.

In addition to their ship and warship building capabilities, Company is also engaged in engineering and engine production activities.

As a part of their engineering division they manufacture deck machinery items, pre-fabricated portable steel bridges and marine pumps. The shipbuilding division contributes a significant majority of their revenue from operations.

Company has established capabilities for in-house design and shipbuilding and has made considerable contributions to the indigenous warship construction program of India.

In last five (5) decades, Company has built and delivered ships ranging from small to large and advanced vessels including frigates, anti-submarine warfare corvettes, missile corvettes, landing ship tanks, offshore patrol vessels, inshore patrol vessels, WJ-FAC, hover crafts and fast interceptor boats to the Indian Navy, Indian Coast Guard, MHA and Governments of other countries.

Over the years, Company has responded to the varied shipbuilding requirements of the Indian Defence Services and have evolved from building simpler vessels to building bigger and technically advanced warships.

Presently, Company has three (3) separate facilities for shipbuilding, all of which are located in close vicinity of each other at Kolkata, India.


What is Defence Procurement Procedure 2016 (“DPP”)?

The DPP has been adopted by MoD in April 2016 with the focus on institutionalizing, streamlining and simplifying defence procurement procedure to give a boost to “Make in India” initiative of the Government of India, by promoting indigenous design, development and manufacturing of defence equipment, platforms, systems and sub-systems.

The DPP sets forth a new category of procurement ‘Buy Indian-IDDM (Indigenously Designed, Developed and Manufactured)’ and the same has been accorded top most priority for procurement of capital equipment.


Company’s Business:

Company currently offer products in the following core verticals:

Shipbuilding Division.

Shipbuilding division consist of the construction of vessels for clients engaged in the defence sector shipping industry. Vessels built by Garden Reach Shipbuilders & Engineers Ltd include frigates, anti-submarine warfare corvette, missile corvette, landing ship tank, landing craft utility, survey vessel, fleet replenishment tanker, fast patrol vessel, offshore patrol vessel, inshore patrol vessel, WJ-FAC, hover craft and fast interceptor boat.

Engineering Division.

Company’s engineering division offers portable bridges, deck machinery items and marine pumps.

Engine Production Division.

Company supply and overhaul diesel engines through their engine production division at DEP.The vast majority of their engines are supplied to the Indian Navy and Indian Coast Guard.


Company’s Order Book:

Company’s aggregate order book as on February 28, 2018 was Rs.20,803.3 crores, comprising gross order value in the shipbuilding segment, engineering segment and the engine segment of Rs.20,730.7 crores, Rs.63.30 crores and Rs.9.20 crores respectively.


Competitors for the Company:

Company’s competitors in defence shipbuilding are Mazagon Dock Shipbuilders Limited, Cochin Shipyard Limited, Goa Shipyard Limited, Hindustan Shipyard Limited, L&T Shipyard and Reliance Naval and Engineering Limited.


Management Team:

  1. Mr. Rear Admiral Vipin Kumar Saxena (Designation: Chairman & Managing Director)
  2. Mr. Sarvjit Singh Dogra (Designation: Designation: Director (Finance) & CFO)
  3. Mr. Asit Kumar Nanda (Designation: Designation: Whole Time Director)

Special Thanks: We would like to thank Board of Directors of Garden Reach Shipbuilders & Engineers Ltd for inviting Markets Guruji Team to the IPO Press Conference.


Positives for the Company:

Modern Manufacturing Platform and Integrated Shipbuilding Facilities.

Company has modern infrastructure facilities available at their shipyard coupled with vast expertise give them a significant edge over other domestic defence shipyard.

Company has undertaken major modernization of its infrastructure and has developed a new integrated shipbuilding facility at the Main Works Unit that allows them to use modular construction when building warships, which enables them to reduce the shipbuilding period and to construct ships in line with the global practices in the shipbuilding industry.

Company has facilities to produce eight (8) large ships and twelve (12) medium/ small ships concurrently.


Make in India Initiative.

Company has an advantage over global shipyards in securing contracts to build vessels for the Indian Navy and Coast Guard because they qualify for the Make in India initiative under the DPP.

The Make in India initiative grants indigenous manufacturers a competitive advantage when supplying to the domestic market. The MoD has given the highest priority to Indigenously Designed, Developed and Manufactured (“IDDM”) products for capital procurement.

Pursuing New Market Opportunities.

Company intends to market all vessel sizes for exportation in various geographic locations. However, they anticipate exporting small and medium sized warship and patrol vessels to South East Asia, west Asia, African countries and Latin America which provides them with opportunities to develop their export business.

Company exported their first ship in 2014 and seek to substantially grow their sales from ship exports.

Company’s Order Book:

Company’s aggregate order book as on February 28, 2018 was Rs.20,803.3 crores, comprising gross order value in the shipbuilding segment, engineering segment and the engine segment of Rs.20,730.7 crores, Rs.63.30 crores and Rs.9.20 crores respectively.


Peer Group Comparison:

There are no comparable listed companies in India engaged in the same line of business as Garden Reach Shipbuilders & Engineers Ltd, hence comparison with industry peers are not applicable.


Financials of the Company:

(in Crores) FY 15 FY 16 FY 17 FY 18
Revenue 1639.16 1846.7 1157.95 1525.75
Net Profit 51.72 162.04 12.23 86.8


IPO Details:

Details Info
Issue Opens on 24th September 2018
Issue Closes on:. 1st October 2018
Issue Price Rs.114 – 118
Retail Discount & Employee Rs.5
Face Value Rs.10
Minimum Lot 120 Shares
Minimum Investment Rs.14,160
Issue Constitutes 25.5%
Issue Size Rs.344.68 cr
Market Cap Rs.1351.7 cr
Listing at NSE & BSE
Equity Shares Offered (OFS) 2,92,10,760
Equity Shares Prior to the Issue 11,45,52,000
Equity Shares after the Issue 11,45,52,000


Important Dates:

Finalization of Basis of Allotment on or before 1st October 2018
Initiation of Refunds on or before 3rd October 2018
Credit of Equity Shares: on or before 3rd October 2018
Listing Date: on or before 5th October 2018


Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 06:00 PM) Shares Offered Day-1 Day-2 Day 3 Day 4 Day 5 Day 6
QIB 1,43,19,000 0.00 0.00 1.22 1.22 1.81 1.81
NII 42,95,700 0.00 0.00 0.01 0.30 0.30 0.31
Retail 1,00,23,300 0.04 0.09 0.22 0.22 0.23 0.24
Employee   5,72,760 0.01 0.02 0.12 0.13 0.13 0.14
TOTAL 2,92,10,760 0.01 0.03 0.67 0.72 1.01 1.02


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
7.14 16.52 8.54% 88.69


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Company Contact Info:
Garden Reach Shipbuilders & Engineers Limited
43/46, Garden Reach Road
Kolkata – 700 024
West Bengal, India
Tel: +91-33- 24698100-8113
Fax: +91-33-24698150
Email Id:


IPO Registrar Info:
Alankit Assignments Limited
Registered Office: Alankit House
205-208, Anarkali Complex, Jhandewalan
Extension, New Delhi -110 055
Tel: +91-11-42541234 / 23541234
Fax: +91-11-42541201
Investor Grievance E-mail: