Warship maker Garden Reach Shipbuilders gets Sebi's go ahead for IPO

State-owned Garden Reach Shipbuilders and Engineers has received markets regulator Sebi's go ahead to float an initial public offering.
 
The warship maker had filed its draft red herring prospectus (DRHP) with Sebi on March 26 and obtained its "observations" on May 22, according to the latest update with the markets watchdog.
 
Sebi's observations are necessary for any company to launch public issues like initial public offer (IPO), follow-on public offer (FPO) and rights issue.
 

Going by the draft papers, Garden Reach Shipbuilders' IPO will see government selling 20,046,600 equity share - or a 17.5 per cent stake - in the company.

 
The public issue is being made as the government intends to unlock the real value of such PSUs and bring in greater accountability.
 
IDBI Capital Markets and Securities and Yes Securities (India) are the merchant bankers managing the IPO. The equity shares of the company are proposed to be listed on the BSE and NSE.
 
Earlier this month, another state-run Rail Vikas Nigam received Sebi's go-ahead to launch an IPO, while two other firms - Indian Renewable Energy Development Agency and RITES secured the markets watchdog approval in February.
 
So far this year, the government has pared its stake in Hindustan Aeronautics, Bharat Dynamics and Mishra Dhatu Nigam. The move is part of the government’s disinvestment drive aimed at raising Rs 800 billion from stakes sales in state-run companies in 2018-19.