GE Shipping re-listed today at Rs 249 on the BSE.

Huzaifa Suratwala of Emkay Stock Broking says he was expecting the stock to list around Rs 250-260."I always have been comfortable valuing the stock at a discount to the NAV which I have put at Rs 400. I put up around 35% discount. My fair price to the stock I say would be around Rs 263." he says.

GE Shipping is a bit volatile and would command only five times multiple ” but we should not forget the Great Ship India, which is the offshore unit within the Great Shipping”

“So if you have to look at the valuations, which the company would offer two years down the line then it would be immense,” he adds. Given that it is trading at these valuations, it gives some upsides for investors who would be coming in at this venture.

Emkay Stock Broking believes that the Offshore would be valued in terms of PE multiple. "If one looks at the average PE multiple traded by putting aside Aban Lloyd, Dolphin, Garware Offshore and take up some foreign companies like Hercules then that would give a range of 15-20 multiple. “So I would be comfortable giving something in band of 15-20 multiple to the Great Offshore.”

The shipping business is more of a tanker driven business for Great Shipping, almost 30 vessels are into tanker.The freight rates have moved down in tanker rates but then again if they are looking at the dry bulk, that has moved up 30% YoY at this juncture. “So I think that freight rates would be volatile and would be subdued in the second half.One should not forget valuing offshore within the Great Shipping.”  He adds.