Shares of Mazagon Dock Shipbuilders and Garden Reach Shipbuilders declined on Thursday as reports said the two companies were the frontrunners for a major contract by the Defence Ministry.

What Happened: The Defence Ministry is on the verge of green lighting a massive ₹70,000 crore order for warships for the Indian Navy. The prime contenders for the ministry’s lucrative deal are Mazagon Dock Shipbuilders and Garden Reach Shipbuilders, The Economic Times reported.

This order forms a part of the Ministry’s ongoing initiative to strengthen the nation’s naval prowess.

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Details are awaited as the ministry clears the project but reports also suggest that the project could be split between the two yards — A split order will help shorten delivery timelines for the Navy.

The state-of-the-art frigates will feature a high degree of indigenous content, including domestically developed fire control systems, Brahmos cruise missiles, anti-submarine weapons and electronic warfare systems. This order is expected to significantly benefit numerous sub-suppliers and vendors, as they will receive a substantial portion of the work.

Garden Reach Shipbuilders announced bagging an order worth around ₹840 crore from the National Centre for Polar and Ocean Research (NCPOR) on Tuesday. The contract involved the construction and delivery of an ocean research vessel (ORV). 

Price Action: Shares of Mazagon Dock Shipbuilders was down 2.98% at ₹5,244, while Garden Reach Shipbuilders was trading 1.83% lower at ₹2,515.65 on Thursday morning.

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