New Delhi: The Centre has started the process for the disinvestment of 10 percent stake in state-run GRSE (Garden Reach Shipbuilders & Engineers) Limited, a notification posted on a government website showed. The notification has been released by the Department of Investment and Public Asset Management (DIPAM), seeking to engage merchant bankers and selling brokers for partial disinvestment in GRSE. "The GoI intends to disinvest 10 percent paid-up equity capital of GRSE out of its shareholding of 74.50 percent, through 'Offer for Sale' (OFS) method of shares by promoters through the stock exchanges' as per Securities and Exchange Board of India (SEBI) Rules and Regulations," the notification said.
The government is also considering allotting shares to eligible and willing employees of GRSE at a discount to the issue / discovered price (lowest cut off price) up to a maximum of certain percentage of the OFS size subsequent to the completion of the transaction under OFS. The percentage and extent shall be decided in due course. Merchant bankers / selling brokers will be required to render such assistance as may be required in this connection.
The authorised share capital of the company is Rs 125 crore and the paid-up equity capital is Rs 114.55 crore as on March 31, 2019. The government holds 74.50 percent of the equity of GRSE. The face value of each equity share is Rs 10/-. The profit after tax for the fiscal 2018-19 is Rs 109.94 crore for GRSE. As on March 31, 2019, it has a net worth of Rs 1,038.31 crore.
The news comes as the government is aiming to raise Rs 65,000 crore through disinvestment of CPSEs before the end of financial year 2019-20. The target for the next fiscal year has been set at Rs 1.20 lakh crore.