Garden Reach Shipbuilders Inks MoUs With Merlinhawk Aerospace And KELTRON, Shares Upbeat

Garden Reach Shipbuilders & Engineers has announced the signing of Memorandums of Understanding (MoUs) with Merlinhawk Aerospace Private Limited and Kerala State Electronics Development Corporation Limited (KEL TRON) on July 22, 2024.

What Happened: The partnership with Merlinhawk Aerospace is focused on the development of composite doors and hatches for naval ships, counter UAV solutions, composite masts for Indian Navy ships, and hydrogen fuel cells-based power generation for maritime applications.

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The MoU with KELRON seeks to establish a collaborative working arrangement for the development of core futuristic technologies in various fields to achieve self-reliance in certain areas of underwater surveillance. The financial impact of these MoUs is yet to be determined.

Earlier in July, the company’s shares jumped 3% after it bagged an order worth approximately ₹840 crore from the National Centre for Polar & Ocean Research for the construction and delivery of an ocean research vessel. This order is expected to be executed within 42 months.

Furthermore, Garden Reach Shipbuilders is reportedly one of the frontrunners for a massive ₹70,000 crore order for warships for the Indian Navy from the Defence Ministry. This order is part of the Ministry's ongoing initiative to strengthen the nation's naval prowess.

Price Action: Garden Reach’s share price was up 4.85% to trade at ₹2,574.45 in early trade on Monday.

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