Greatship to launch IPO soon

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Greatship, a subsidiary of GE Shipping will launch its in initial public offering (IPO) soon. GE Shipping holds 97.6% in Greatship.

It is one of India's largest offshore oilfield services providers. Greatship operates a fleet of offshore support vessels and jack-up rigs, which provide marine logistics and drilling services to support the offshore oil and gas exploration and production (E&P) activities of clients.

It intends to commence the business of offshore construction and have commissioned the construction of seven vessels that are capable of offering a wide range of offshore construction services, after being appropriately equipped and fitted.

Greatship has two wholly-owned subsidiaries in Singapore, Greatship Global Offshore Services Pte Ltd (GGOS) and Greatship Global Energy Services Pte Ltd (GGES). GGES focuses on the offshore drilling services business. GGOS currently owns one offshore support vessel and has two vessels under sale and leaseback arrangements.

The issue proceeds will be used for funding the acquisition of certain vessels; early redemption of part of the preference shares issued to promoter and funding the repayment of a portion of the debt.

Promoter company - Great Eastern Shipping has reported consolidated net profit at Rs 171 crore in Q1FY11 as against Rs 154 crore, a growth of 11.04% on year-on-year basis (YoY).

Consolidated revenue was down 18.9% at Rs 688 crore from Rs 840 crore.