State-owned Garden Reach Shipbuilders opened its initial public offering (IPO) on Monday with a price band of Rs 115-118 per share. The Kolkata-based company is under the administrative control of the Ministry of Defence and primarily adheres to the shipbuilding requirements of the Indian Navy and the Indian coast guard.
Vipin Kumar Saxena, chairman and MD of the company, spoke to CNBC-TV18 about the IPO and business outlook for FY19.
“FY18 has done very well compared to FY17. Going forward, we have four projects of the navy and the coast guard, we have a very strong order book of Rs 20,300 crore. We also have two divisions, one is engineering and engine division,” Saxena said.
“We will be making the warships in the form of blocks. We can make warships and divide into various form of blocks concurrently at the various locations, which is going to cut down the building period considerably and also the fact that the design, which was a challenge earlier, we have totally new concepts of designs, 3D modelling will be done very much in advance and these things will be helping us a lot in completing the orders well on time,” he added.
“The current order book which we have of about Rs 20,000 crore of the ship building – there is no effect whatsoever with regards to any kind of financial or any cut into the payment which is supposed to be given to us. As far as we are concerned, we have never faced such kind of trouble and also going forward there will be no issue with regards to the defence budget coming down against these particular ongoing projects,” said Saxena.
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