Garden Reach sails smooth

Garden Reach Shipbuilders is in the limelight today. The stock price rose over 5% to Rs.88.45 and for now at least, remains firmly in the green.

The stock price has gone up on receipt of a new order from the Ministry of Defence. This order is for construction and delivery of 4 survey vessels (Large) at an estimated cost of Rs2,435 crore under fixed-price basis.

The first ship is to be delivered within 36 months from the contract signing date, i.e. October 30, 2018.

The subsequent ships are to be delivered with a gap of 6 months each from the delivery of the previous ship.

The project is expected to be completed within 54 months from the date of signing of the contract.

The company got listed on the bourses just 21 days ago. Its IPO had received a very poor response following which the lower price band was lowered and issue date closure was also extended. It got listed at a discount – as against IPO price of Rs.118, its listing was at Rs.104. And today, it is quoted at around 27 to 29% discount to the IPO price.