Shares of Garden Reach Shipbuilders & Engineers were rocketing on the bourses on Monday morning after the company announced bagging the order.

Shares of Garden Reach Shipbuilders & Engineers were rocketing on the bourses on Monday morning after the company announced bagging the order.

What Happened: The PSU has secured a contract to construct an advanced ocean-going tug for the Government of the People’s Republic of Bangladesh. The contract was announced on Monday. The Directorate General Defence Purchase, Ministry of Defence, Government of the People’s Republic of Bangladesh awarded the contract, which involves the design, construction, and delivery of the ocean-going tug vessel.

The tug’s primary roles include towing ships at sea both alongside and astern, assisting during berthing and casting off, and helping with turning through pushing and pulling. Additionally, the vessel will have the capability to perform rescue and salvage operations at sea.

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The contract, worth approximately $21 million (around ₹174.3 crore), is slated for execution within 24 months. The advanced ocean-going tug will measure nearly 61 metres in length and about 15.80 metres in width. It will be equipped for towing of ships at sea, berthing, and casting off, as well as rescue and salvage operations.

Why It Matters: This contract win comes on the heels of another export order for GRSE. The company bagged a ₹448 Cr export order from a prominent German shipbuilding entity, Carsten Rehder Schiffsmakler and Reederei. The contract involved the construction and delivery of four multi-purpose vessels, each with a capacity of 7,500 deadweight tonnage.

Price Action: GRSE’s share price was up 8.93% to trade at ₹2,286.60 as the markets opened on Monday.

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