Indian naval shipyard Garden Reach Shipbuilders and Engineers (GRSE) will launch an initial public offering (IPO) on 24 September, the company has announced.
The IPO – the latest in a series of Indian defence industry share sales – will see the divestment of a 25% stake, with the Indian government expected to raise about INR3.4 billion (USD47 million) through the listing.
GRSE said that in launching the IPO it will look to pursue a number of strategies to help maintain and build on its position as a leading naval shipbuilder in India.
The company said these strategies include strengthening its relationship with its primary customer, the Indian Navy (IN); enhancing its capability to pursue naval ship repair and retrofitting contracts; and upgrading its shipbuilding facilities to enable the accelerated construction of more advanced vessels.
GRSE also said it aims to enhance its innovative capabilities by investing a greater amount of capital as a percentage of its revenue in research and development activities, and it also intends to put greater efforts into securing exports. In terms of international sales, GRSE said it aims to pursue opportunities to export small and medium-sized warships and patrol vessels to Africa, Latin America, Southeast Asia, and West Asia.
GRSE said that its revenues sourced from the IN and Indian Coast Guard make up more than 90% of its total sales. As of July 2018, the company had an order book of INR203 billion, comprising 13 naval vessels.
GRSE said its revenues and profits had fluctuated in recent years, which it said was indicative of the cyclic nature of naval shipbuilding. In fiscal year 2017/18, GRSE’s revenues and post-tax profits were INR13.46 billion and INR868 million respectively.
The company’s biggest current programmes include the construction of Project 17A (P-17A) frigates and Mk IV landing craft utility vessels for the IN, and Rajshree-class inshore patrol vessels for the coastguard.
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