October 1, 2018 / 1:35 PM / 4 months ago

India's Garden Reach Shipbuilders IPO fully subscribed after 3-day extension

(Reuters) - Garden Reach Shipbuilders & Engineers Ltd’s initial share sale to raise up to 3.45 billion rupees ($47.31 million) was fully subscribed on the sixth day of the sale on Monday, after the state-owned firm extended the offer by three days.

Investors bid for about 29.8 million shares of the defence shipbuilder, compared with the 29.2 million shares the government had put on the block, according to data on National Stock Exchange as of 1130 GMT.

The company extended the offer after it received weak response from investors, with only 67 percent of the shares on offer being subscribed by the last day of the sale on Wednesday.

Garden Reach Shipbuilders also cut the lower end of its price range to 114 rupees from 115 rupees, while maintaining the upper end at 118 rupees for the IPO.

The government had initially planned to sell 20 million shares.

The offering is part of the government’s plan disclosed last year to sell up to 25 percent of its stake in four state-owned companies under the control of the department of defence.

Earlier this year, Hindustan Aeronautics Ltd’s IPO did not manage to get full subscription, prompting the state-run military aircraft manufacturer to price its offer at the bottom end of the range, and raising a lower-than-expected 41.13 billion rupees for the government.

($1 = 72.9200 Indian rupees)

Reporting by Krishna V Kurup in Bengaluru; Editing by Subhranshu Sahu

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